Management

With a return of 13.0% after costs, total fund capital increased to SEK 391.4 billion at the end of the first half of 2019. The portfolio’s active return during the first half of the year exceeded AP4’s benchmark portfolio by 1.7 percentage points. The half-year result amounted to SEK 45.2 billion.

A net total of SEK 3.0 billion was paid out to the pension system during the first half of the year. Adjusted to a full-year basis, total costs amounted to 0.10% of average assets under management.

The return before costs was 13.0%. Currency exposure at the end of the period was 17.6% of fund capital.

AP4 has taken active ownership responsibility by voting at the Annual General Meetings of 80 Swedish and 872 foreign companies during the first half of the year. Ahead of the 2019 AGM season AP4 participated on 39 nomination committees.

Key ratios for AP4's operations June 30, 2019 June 30, 2018 December 31, 2018
Fund capital at end of period, SEK bn 391.4 366.9 349.3
Net result for the period, SEK bn 45.2 13.7 -0.5
Net disbursements to pension system, SEK bn -3.0 -3.3 -6.8
Fund capital at beginning of period, SEK bn 349.3 356.6 356.6
       
Asset management costs, operating expenses, % 0.06 0.06 0.06
Asset management costs, commission expenses, % 0.04 0.04 0.04
Total asset management costs, % 0.10 0.10 0.10
       
Return on total portfolio, net of asset management costs, % 13.0 3.8 -0.2
Real return on total portfolio, net of asset management costs, %¹
11.7 2.9 -2.3
Annualized total return after asset management costs, average 5 years, % 9.3 11.0 8.1
Annualized total return after asset management costs, average 10 years, % 10.4 8.7 9.9
Real annualized return after asset management costs, 10 years, %¹
9.1 7.9 8.7