AP4's brief is to contribute to the stability of the national pension system through managing Fund capital with the aim of generating the best possible return over time.
The Fund is a governmental authority whose operations are regulated in the Swedish National Pension Funds Act (2000:192). The Government appoints all nine of the Fund's Board members, and the Ministry of Finance continually supervises and evaluates the Fund's operations.
The Fourth Swedish National Pension Fund (AP4) is one of five buffer funds in the national pension system. The income pension system is a distribution system in which pension contributions paid in by the gainfully employed during the year are used to pay out pensions to pensioners the same year. The surpluses and deficits that arise when contributions deviate from disbursements are handled by the AP Funds, which is why they are often referred to as "buffer funds".