AP4 Interim Report January-June 2005

• The market value of the Fourth National Swedish Pension Fund’s investments on 30 June 2005 was SEK 165.8 billion, compared with SEK 151.5 billion at the start of the year. Currency exposure was 19.7 % of total assets, compared with 20.4 % at the start of the year.
• Net profit for the first half of 2005 amounted to SEK 12.5 billion, compared with SEK 7.4 for the same period last year.
• Return on the Fund’s total assets reached 8.3 % (2004: 5.5 %), which was marginally higher than the Fund’s benchmark index.
• The composition of the Fund’s investments and their relative returns are shown in the table below, together with the benchmark index and strategic portfolio.

The Fourth National Swedish Pension Fund’s President, Thomas Halvorsen, comments:

- The good absolute return for the first half, which mainly benefited from a high proportion of Swedish equities in the strategic portfolio and exchange rate development, further strengthened the accumulated surplus for the Fourth Swedish National Pension Fund since the re-start at year-end 2000.

- The Fund’s active currency management during the period generated a return on a par with the excess return target for the year, representing a very strong performance. It is also pleasing that internally managed global equities can report a return that exceeds the excess return target for the period.