AP4’s goal is to generate the highest possible return after expenses, where cost efficiency is a guiding principle.
A high sustainable return requires good risk diversification that, among other things, is created through investments in different asset classes and investment strategies. Cost varies greatly depending on the degree of active management, investment complexity, liquidity and more.
At the same time different asset classes and investment strategies give varying risk and return expectations, resulting in a portfolio with a good expected risk diversification and high long-term returns. Cost is always in focus and alternative ways of working and creating value are evaluated continually.
Management costs, measured as operating expenses as a percentage of average fund capital, amounted to a low 0.06 (0.06) percent.
Management costs including commission costs, such as fees paid to external managers and custodian costs, amounted to 0.10 (0.11) percent, measured as operating expenses as a percentage of average fund capital.
Management costs, including and excluding commission costs, are low and very competitive compared with other pension funds, both in domestic and international comparisons.