Asset Values and Return

AP4's capital, amounting to SEK 348 billion, is invested in various asset classes such as equities, interest-bearing securities and real estate.

Positive market development

Equity markets maintained their strong performance during the first half of the year, where the MSCI ACWI (the world index in local currency) returned just over nine percent. Long-term government interest rates for the major markets moved sideways during the first half of the year, and the Swedish krona strengthened against, above all, the US dollar, the Japanese yen and the British pound. 

  • Significant positive contribution from listed shares, both Swedish and global;
  • Positive return from Real Estate;
  • Interest-bearing assets developed slightly positive;
  • Stronger Swedish krona resulted in a negative currency contribution.
Asset class Market value, SEK bn Portfolio return, % Contribution to profit/loss for the period, SEK bn
Equities, total 199.9 9.4 17.9
Global equities 133.2 8.7 11.2
Swedish equities 66.7 11.0 6.7
Fixed income assets 113.7 0.3 0.3
Real estate 26.2 10.4 2.5
Alternative assets 7.3 4.5 0.4
Currency 0.0 -1.0 -3.5
Other¹ 0.5 0.0 -0.1
Total investment assets² 347.6 5.3 17.5

Listed shares more than half of the assets

The Board has determined that AP4 has the best opportunity of achieving the long term goal of high returns by holding a high proportion of listed equity. 




Positive contribution from three investment horizons  

AP4 has a management structure based on three investment horizons: 40 years, 3-15 years and up to three years. The three different management horizons give AP4 the possibility to make the most of investment opportunities with expected good returns, which also provides additional risk diversification. This structure allows for a longer investment horizon than most other investors, and is estimated to increase AP4’s potential for high returns over time. All three time horizons have contributed positively since the structure was put in place in 2013, where total result over the period amounts to SEK 147 billion.

Normal portfolio - 40 years is a reference portfolio consisting of indeces, where the asset allocation is resolved by the Board. Since the start of the management structure in 2013, the Normal portfolio’s
contribution amounts to SEK 118,7 billion, of which the decision to have a high proportion of listed equity attributed the largest positive contribution.

AP4’s assets, such as equities, interest-bearing securities and real estate, are managed within the Strategic and Tactical Management.

Strategic management - 3 – 15 years has contributed SEK 24.8 billion to earnings since the start of the management structure in 2013, of which the largest contributions are from Swedish equities and Real Estate. Every year since start and to date, 2017, the Strategic Management has generated a return better than the index.

Tactical management – with a time horizon of up to three years - has since the start of the structure in 2013, contributed positively to earnings by 3.1 billion and generated a return better than the index. The return was better than the index even in the first half of 2017.

High quality at low cost

Cost-effective management increases AP4’s ability to reach its long-term goal of creating the highest sustainable return after costs. AP4’s management costs have over time amounted to 0.10 percent, which is low and competitive in both domestic and international comparison.


The number of employees at mid-year was 56, which is two persons more than the number of employees at the beginning of the year.