Asset returns can also be described through AP4’s management structure based on three investment horizons: up to three years, three to 15 years and 40 years. The Board decides on the composition of the longest of these investment horizons and determines the mandate and goals of the other two.
The management structure was implemented 2013 and has therefore been active for four years. The evaluation period is five years, which has not yet been reached. It is AP4’s assessment that the management structure provides better conditions for AP4 to take advantage of the Fund’s longest mandate.
The management structure has a clear strategic mandate, the Strategic management, which takes advantage of business opportunities with longer investment horizons of between 3-15 years. The Strategic mandate allows AP4 to have a longer investment horizon than the market in general.