Asset management cost
In order to achieve the goal of the highest sustainable return over time, it is crucial for us to be cost-effective. Therefore, our cost focus is an integrated approach that permeates our entire business. We report costs transparently in all reporting and communication.
AP4 participates in the international comparison of pension funds' costs carried out by the research firm CEM Benchmarking. The analysis for 2021 shows that AP4's cost level is about half of the cost level for comparable pension funds.
There are several reasons for this, we have a sufficiently high level of fund capital to conduct cost-efficient asset management and an asset allocation focused on asset classes that are less cost-intensive to manage.
The lower cost level can also be credited to our implementation style, which mainly relies on a larger share of internal management than other pension funds. We are also cost-efficient by having lower costs for external asset management costs than the comparison group.