Management

The Fourth Swedish National Pension Fund’s (AP4) return for the first half of 2021 was 10.0 before costs, and 9.9% after costs. AP4’s total fund capital as per 30 June 2021 was SEK 489.8 billion, compared with SEK 449.4 billion at the start of the year. The result for the first half of 2021 was SEK 44.5 billion. During the same period, net payments from AP4 to the pension system totalled SEK 4.2 billion. The portfolio’s active return during the first half of the year was higher than the return for AP4’s benchmark portfolio, by 0.8 percentage points. Currency exposure at the end of the period was 21.0% of fund capital.

AP4’s management costs amount to a low 0.09% of managed assets, which is roughly half the cost level for comparable pension funds in an international comparison. AP4 will continue to develop its operations with strong focus on cost-efficiency.

AP4 participated on 40 nomination committees ahead of Annual General Meetings in 2021. During first half year 2021 AP4 voted at the AGMs of 125 Swedish companies and 873 international companies.

Key ratios for AP4's operations 30 June, 2021 30 June, 2020 2020
Fund capital at start of period, SEK bn 449.4 418.0 418.0
Net result for the period, SEK bn 445.5 -10.6 39.3
Net flow national pension system, SEK bn -4.2 -4.2 -7.9
Fund capital at end of period, SEK bn 489.8 403.2 449.4
Asset management costs, operating expenses, % 0.06 0.06 0.06
Asset management costs, commission expenses, % 0.03 0.03 0.03
Total asset management costs, % 0.09 0.09 0.09
Return total portfolio, before costs % 10.0 -2.5 9.7
Return total portfolio, after costs, % 9.9 -2.5 9.6
Real return total portfolio, net of asset management costs, %
8.8 -1.6 9.1
Annualized total return after asset management costs, average 5 years, % 11.5 7.4 9.8
Annualized total return after asset management costs, average 10 years, % 10.6 9.5 9.7