AP4 overshot targets and Fund Capital rose to SEK 241 billion
- Fund capital increased to SEK 240.9 billion (220.5), and profit for the first six months was SEK 14.4 billion (12.2).
- Total return both before and after expenses was 6.3% (5.8).
- AP4 has generated annual nominal total return after expenses of 7.2% on average over 10 years, which in real terms (adjusted for inflation) equals 5.9% annually. This has overshot the Board’s real return requirement of 4.5% on average annually, and outperformed the income index.
- AP4’s active management outperformed the benchmark index by 0.1 (0.8) percentage points before expenses, equalling SEK 0.3 billion (1.6). It was the ninth consecutive six-month interim period in which the Fund’s active management outperformed the benchmark index, thus delivering a better return than passive management.
- Management expenses remain low. The operating expense ratio, excluding commission expenses, was 0.07% (0.08) on an annualised basis. Including commission expenses, the ratio was 0.11% (0.10). Management expenses totalled SEK 127 million (110).
- Foreign exchange exposure was 28.6% (27.4) at the end of June.
- During the January–June period, AP4 paid out a net amount of SEK 3.1 billion (1.7) to the pension system from Fund capital.
- We are very pleased that AP4’s active management has outperformed the index for the ninth consecutive six-month interim period, especially since this was the first half-year period with the new management structure in place,says Mats Andersson, CEO of AP4.
- An even more pleasing and relevant aspect is AP4’s solid long-term total return. In the past ten years, it has amounted to 7.2% annually on average, giving a real return (that is, adjusted for inflation) of 5.9% annually. This is above the Board’s long-term target of 4.5% annually, adds Mats Andersson.
Stockholm, 22 August 2013
AP4’s January–June 2013 report is available at www.ap4.se