Portfolio

A diversified portfolio

Per June 30 2020, AP4's fund capital was SEK 403.2 billion. More than half of these assets were invested in Swedish and global equities. Fixed income investments corresponded to a third of the capital, and real estate and alternative investments amounted to 13 percent of the portfolio.

Long-term perspective warrants substantial equities allocation

AP4’s long-term assignment and a higher expected return for equities compared to other asset classes warrants a higher equities allocation, despite the relatively higher risks. Substantial exposure to Swedish equities and fixed income investments is warranted by an anticipated higher return relative to many other markets as well as by favourable opportunities for AP4 to generate excess returns through active management and lower currency hedging costs.

Asset class Market value, SEK bn Exposure¹, %
Global equities 159.7 39.6
Swedish equities 61.7 15.3
Global fixed income 96.6 24.0
Swedish fixed income 32.4 8.0
Real assets 52.8 13.1
Other assets² 0.0 0.0
Currencies 0.0 0.0
Total investments
403.2 100.00