Favourable return as the world transitions from crisis to restart
“AP4’s asset portfolio generated a favourable return of 9.9% during the first half of 2021 after costs following an equally solid return of 9.6% for the full year 2020. These are historically favourable returns, but they should also be viewed against the background of the massive financial and monetary policy stimulus measures that were introduced across a broad front in 2020 and early 2021,” comments Niklas Ekvall, CEO of AP4.
“Hopefully the world is now successively emerging from the most acute part of the Covid-19 pandemic. In the uncertain environment that is still prevailing it is natural that actors in the financial market are having a hard time determining what type of cycle the world economy is heading into. A tug of war is currently in progress where the hope for a prolonged period of strong economic growth is on the one side and concerns about bottlenecks and rising inflation are on the other. This tug of war will likely result in an uncertain market environment going forward. We should also expect to see lower returns on financial assets in the coming years compared to what we have seen in the last ten years," says Niklas Ekvall.
“We are continuously developing our work on integrating sustainability in our investment activities, and one such area is thematic sustainability investments, where we are working systematically and proactively to identify investments that can generate favourable returns to the pension system while at the same time significantly contributing to the climate transition. During 2020 and the first half of 2021 AP4 made new investments in sustainable infrastructure, renewable energy and other parts of the energy transitionof approximately SEK 10 billion,” concludes Niklas Ekvall.
Key ratios for AP4’s operations |
30 June 2021 |
30 June 2020 |
2020 |
Fund capital at start of period, SEK bn |
449.4 |
418.0 |
418.0 |
Net result for the period, SEK bn |
44.5 |
-10.6 |
39.3 |
Net flow to national pension system, SEK bn |
-4.2 |
-4.2 |
-7.9 |
Fund capital at end of period, SEK bn |
489.8 |
403.2 |
449.4 |
Asset management costs, operating expenses, % (annualised) |
0.06 |
0.06 |
0.06 |
Asset management costs, commission expenses, % (annualised) |
0.03 |
0.03 |
0.03 |
Total asset management costs, % (annualised) |
0.09 |
0.09 |
0.09 |
Return, total portfolio, before costs, % |
10.0 |
-2.5 |
9.7 |
Return, total portfolio, after costs, % |
9.9 |
-2.5 |
9.6 |
Real return after costs, %1 |
8.8 |
-1.6 |
9.1 |
Annualised return after costs, 5 years, % |
11.5 |
7.4 |
9.8 |
Annualised return after costs, 10 years, % |
10.6 |
9.5 |
9.7 |
1 The CPI for June 2021 is an estimate, since this figure was not yet available at the time of publication of the interim report.
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About Fjärde AP-fonden
AP4’s mission is to contribute to the financial security of current and future pensioners in Sweden by managing part of the national pension system’s buffer capital. AP4’s long-term perspective, responsibility as an owner and strong commitment to sustainability create opportunities for high returns at a low cost. In this way AP4 works for more secure pensions.
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Latest releases from Fjärde AP-fonden
Good return in the first half of 202426.8.2024 10:26:32 CEST | Press release
The Fourth Swedish National Pension Fund's (AP4) return for the first half of 2024 amounted to 6.9 per cent after costs. As of the end of June 2024, AP4's fund capital amounted to SEK 533.3 billion, compared with SEK 499.6 billion at the beginning of the year. Profit for the first half of the year was SEK 34.6 billion. During the same period, SEK 0.9 billion was transferred net to the pension system.
God avkastning första halvåret 202426.8.2024 10:25:03 CEST | Pressmeddelande
Fjärde AP-fondens (AP4) avkastning för första halvåret 2024 uppgick till 6,9 procent efter kostnader. AP4:s fondkapital uppgick per sista juni 2024 till 533,3 miljarder kronor, att jämföra med 499,6 miljarder kronor vid årets början. Resultatet för första halvåret blev 34,6 miljarder kronor. Under samma period överfördes netto 0,9 miljarder kronor från AP4 till pensionssystemet.
AP Funds strengthen the Swedish income pension system by adding SEK 142 billion5.3.2024 09:10:00 CET | Pressmeddelande
The First-Fourth AP Funds performed well in 2023 and strengthened the financial position of the income pension system by SEK 142 billion. The result corresponds to an average return of 8.1 per cent. At year-end, the four funds managed total assets of SEK 1,880 billion. The net payments of the AP Funds to the pension system totalled SEK 19 billion. This contributes strongly to the stability of the income pension system and its mission to maximise benefits for current and future pensioners.
AP-fonderna stärker det svenska inkomstpensionssystemet med 142 miljarder kronor5.3.2024 09:10:00 CET | Pressmeddelande
AP-fonderna (AP1-AP4) summerar ett bra resultat för 2023 och stärker inkomstpensionssystemets finansiella ställning med 142 miljarder kronor. Resultatet motsvarar en genomsnittlig avkastning på 8,1 procent. Totalt förvaltade de fyra fonderna vid årsskiftet 1 880 miljarder kronor. AP-fondernas nettoutbetalningar till pensionssystemet var 19 miljarder kronor. Detta resultat bidrar starkt till inkomstpensionssystemets stabilitet och uppdraget att vara till största möjliga nytta för dagens och morgondagens pensionärer.
Good returns in uncertain times23.2.2024 08:23:33 CET | Press release
The Fourth Swedish National Pension Fund (AP4) reports a good return of 9.6 per cent after costs for the full year 2023. With a profit of SEK 43.9 billion, fund capital increased to SEK 499.6 billion after SEK 4.8 billion was transferred net to the pension system during the year. The portfolio's carbon dioxide emissions decreased by 11 per cent compared to 2022 and AP4 has reduced emissions by a total of 65 per cent since 2010. AP4 takes responsibility as owner and served on 56 nomination committees during the year.
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