Management, targets and results

AP4’s three management horizons have returned positive earnings contribution since the management structure was implemented in 2013. The longest of the management horizons contributed positively during the first half of 2016.

Positive contribution first half of 2016

The Normal portfolio (40 years) returned a positive contribution to total return of 2.4 (4.1) percentage points, which corresponds to SEK 7.4 (12.1) billion. The Normal portfolio is a reference portfolio, which is determined by AP4’s Board.

The Strategic portfolio (3-15 years) returned an overall active contribution to total return of -0.5 (2.2) percentage points. This corresponds to SEK -1.6 (6.4) billion in active profit contribution.

The Tactical management (up to three years) active contribution was -0.0 (-0.1) percentage points and was below the benchmark index for the period. This corresponds to a profit contribution of SEK -25 (-347) million. Three of the five sub-portfolios contributed positively.

The return was positive and amounted to 0.4 percentage points for the evaluation period, which is a rolling three-year period, but was, however, -0.1 (-0.1) percentage points lower than the target. Since the start 2009 of the current Tactical management organization, the active Tactical management has delivered in total a positive contribution of SEK 7.8 billion.

AP4's investment horizons' evaluation period, return target and outcome¹

Total portfolio

Normal portfolio,
40 years

Strategic management,
3-15 years

Tactical management,
up to 3 years

Evaluation period

Since start 2001-01-01

-

Rolling 5 years

Rolling 3 years

Return target

4.5 % in real terms

-

0.75 percentage points
(0.5 until year 2013)

0.5 percentage points

Outcome return 

 4.3 %

-

Not active 5 years

0.4 percentage points

 

AP4's investment horizons' contribution to return, risk and costs since start,
2013-01-01
¹

Total portfolio

Normal portfolio,
40 years

Strategic management,
3-15 years

Tactical management,
up to 3 years

Return contribution, %

 11.6

 9.6

 1.8

 0.3

Contribution to net profit², SEK bn

 

 104.0

84.5

17.0

2.5

Risk contribution³, %

 

 6.3

6.8

-0.6

0.1

Operating expense ration, %

0.11

0.04

0.04

0.03

Interim results for 2016

  • Normal portfolio: + SEK 7.4 bn
  • Strategic management: - SEK 1.6 bn
  • Tactical management: - SEK 25 m