Vision, Investment Goals and Strategies

Vision

  • Financial security for Swedish pensioners. The vision clarifies the mandate of AP4 and the other bufferfunds to help safeguard the value of income pensions.

Investment goals

  • AP4's total return in real terms - that is, adjusted for inflation - shall average 4.5% per year over a 10-year period. According to the Fund's analyses, this is the return required for the pension system's assets and liabilities to balance in the long run.
  • AP4 shall achieve an active return - that is, a return exceeding its benchmark index - of 0.5 percentage points per year.

Strategies

  • AP4 devotes considerable resources to the allocation function, that is, to the allocation of capital to different asset classes. The Fund will allocate capital based on three time horizons – long-term (40 years), medium-term (3–5 years), and short-term (6–12 months) – increasing the emphasis on the medium-term horizon.
  • AP4 shall manage assets actively only when prospects are favourable for achieving a positive active return.