Transparent, audited and evaluated

As a Swedish state AP Fund, AP4 has many stakeholders - everything from the individual Swedish citizen, in other words current and future pensioners, to Parliament that establishes and enacts the laws on National Pension Funds.

Audited and transparent

Transparency is a key word for AP4, that endeavors to be transparent in its reporting and communication to the extent possible without it being detrimental to operations.

The AP-Fund’s operations, and the audit of the same, are partly regulated by law.

  • External auditors review the operations and its accounts annually.
  • Each year the Ministry of Finance appoints external consultants to review and evaluate the operations including various specialist areas. The audit and evaluation is a public report which is presented to Parliament each year.
  • The government appoints the AP Funds’ boards, and in accordance with the above evaluates their work; as such the government is a significant stakeholder regarding the focus of the AP Funds’ operations.

In addition, an AP Fund is a natural topic for probing and judging by the media, various NGOs and interest groups. Other important stakeholders are AP4’s employees, whose commitment and skills are a critical success factor for managing the fund’s capital; Swedish and foreign companies AP4 owns shares in, has claims against and/or suppliers of among other things financial services; other institutional investors in Sweden and globally that AP4 collaborates with and/or competes with.

 

The government’s annual evaluation

AP funds are reviewed annually by the auditors and by the government. The government’s separate audit is compiled in a report submitted to the parliament.

Positive government evaluation in 2016

It is gratifying that the AP funds have continued to contribute positively to the income pension system, while at the same time they have accelerated development towards a sustainable financial market, says Finance Minister Per Bolund...

… in a press release when the government’s annual review of the AP Fund’s operations was presented during the Spring 2016.

The evaluation shows that the AP Funds have positively contributed to the pension system’s long-term financing both in 2015 and since its inception in 2001. At year-end 2015, the AP Funds accounted for 14 percent of the income pension system’s assets, which is four percent higher than when the current AP Fund’s system was introduced.

The AP funds have in recent years, according to the evaluation, developed the work in risk management, control and compliance considerably. The Government believes that it is still important area of continuous development as well as among other things, deepen cooperation between the AP Funds, where possible.

The government deems it important to achieve long-term returns and good risk management, where sustainability aspects are integrated into the AP Funds operations, including that the AP Funds influence portfolio companies to act sustainably.