Positive contribution to the pension system

Surpasses the income index by a wide margin

Over the last ten years AP4 has returned 93 percent after expenses. This means an average return after expenses of 6.8 percent per year, net of inflation, which corresponds to a real return of 5.7 percent.

Since the start, 2001-01-01, total return amounts to an annual average of 5.6 percent after expenses. This surpasses the income index, which increased by a corresponding 3.0 percent annually. AP4 has thus contributed positively to the stability of the pension system. AP4’s real, inflation-adjusted, return was 4.3 percent, which is slightly below the long-term target of a real total return of 4.5 percent.

13 of 15 half-year periods better than the index

 

During the first half of 2016 the active contribution was -0.0 percentage points and was below the benchmark index for the period. Three of five sub-portfolios contributed positively. Since 2009 AP4’s active management has delivered a positive extraordinary profit contribution totaling SEK 7.8 billion.

Listed shares more than half of total assets

 

 

The Board has determined that AP4 has the best opportunity to achieve the long-term goal by having a high proportion of listed shares.

Positive Government assessment

- It is gratifying that the AP Funds have continued to contribute positively to the income pension system, while simultaneously accelerating the development towards a sustainable financial market, says Finance Minister Per Bolund in a press release regarding the government’s annual review of the AP Funds’ activities.

The evaluation shows that the AP Funds have positively contributed to the pension system’s long-term financing in 2015 and since inception in 2001. At year-end 2015 the AP Funds accounted for 14 percent of the income pension system’s assets, which is four percentage points higher than when the current AP Funds pension system was introduced.

The evaluation shows that the AP Funds have in recent years developed significantly in the areas of risk management, control and compliance, and the Government recognizes that it is crucial to continuously develop these functions. The Government considers it important to integrate sustainability aspects as a function of the AP Funds management in order to achieve long-term high returns and good risk management, and that the AP Funds endeavor to influence portfolio
companies to act sustainably.

Significant events during the period

  • Sarah McPhee has been appointed by the government as Chairwoman of AP4.
  • The Board of AP4 has appointed Niklas Ekvall  to succeed Mats Andersson, as CEO of AP4. Niklas assumes the role of CEO October 1, 2016.