A strong six months
- Fund capital totalled SEK 220.5 billion (216.3) at 30 June 2012, up SEK 10.5 billion (3.4) in the first six months.
- AP4’s profit for the period was SEK 12.2 billion (3.6).
- Total return after expenses was 5.8% (1.6) in the first six months.
- Active return, that is, the return exceeding the benchmark index, was 0.8 (0.1) percentage points. This corresponded to a contribution of SEK 1.6 billion (0.2).
- Expenses totalled SEK 110 billion (108), which equalled an operating expense ratio of 0.10% (0.10) on an annualised basis.
- Over a ten-year period, total return after expenses outperformed the income index by a margin. Total return reached 5.8% annually on average, thus outperforming the income index, which increased 3.4% annually on average in the same period. The Fund thus contributed positively to the stability of the pension system.
- Real total return after expenses (inflation-adjusted) reached just over 4.4% (2.6) annually on average over a ten-year period. The target set by the board is 4.5% annually on average over a ten-year period.
- At 30 June, foreign currency exposure was 27% (25).
- Net payments to the pension system totalled SEK 1.7 billion (0.2) for the period.
- Earnings for the first six months were strong. It’s good news that all management units outperformed their benchmark indexes, says Mats Andersson, CEO of AP4.
- In the last three years, the contribution exceeding the index from the active management has amounted to close to SEK 4 billion. The internal target has been exceeded by a margin, adds Mats Andersson.
- An even more pleasing and relevant aspect is that the Fund’s total return in the past ten years is on a par with the board's long-term target. In the last ten years, the Fund’s real return, that is return adjusted for inflation, has reached close to 4.5% annually, which can be compared with the target set by the board of precisely 4.5% annually, concludes Mats Andersson.
Stockholm, 22 August 2012
AP4’s complete interim report for the period 1 January – 30 June 2012 is available on the Fund’s website, www.ap4.se.