Cautious stabilisation in first half of 2023
“The strong performance of the stock markets at the start of the year has been favourable for AP4’s portfolio, which showed a return of 6.0% after costs for the first half of 2023. The financial markets continue to be characterised by great uncertainty. Having said this, during the first six months of the year we saw generally positive performance in the world’s stock markets, with a broad, global equity index rising by 14%. This result represents a slight recovery from the weak 2022,” comments Niklas Ekvall, CEO of AP4.
“AP4 has a very long-term mission, and what is of significance is the return that our investment portfolio generates over long time horizons,” Niklas Ekvall continues. “If we stretch out our perspective to five and – even more relevantly – ten years, AP4 shows average portfolio returns of 7.4% and 9.2% per year, respectively. If we extend the horizon to 2001, which is the starting point for the new pension system, the average annual return is 6.2%.
"AP4 continuously analyses sustainability trends and seeks investment opportunities that over time are judged to support the transition to a sustainable society as well as provide a high financial return, for example in areas such as fossil-free transport, green buildings, infrastructure and fossil phase-out in energy systems. Over the past three years, AP4 has invested close to SEK 30 billion in such thematic sustainability investments and our ambition is to gradually increase the allocation to this type of investment at the rate at which we can identify those with good potential." says Niklas Ekvall.
"We are happy and proud of two distinctions we received during the first half of the year: ‘Sovereign Wealth Fund of the Year’ at the Sustainable Investment Awards, and ‘Nordic Investor’ at the IPE Global Real Estate Conference & Awards. These awards are validation that our work is successful in our various areas of operation, and they give us motivation to continue developing our operations,” Niklas Ekvall concludes.
Key ratios for AP4’s operations |
30 June 2023 |
30 June 2022 |
31 Dec. 2022 |
Fund capital at end of period (SEK bn) |
485.6 |
459.1 |
460.5 |
Net result for the period (SEK bn) |
27.7 |
-66.6 |
-62.5 |
Net payments to the pension system (SEK bn) |
-2.6 |
-2.0 |
-4.7 |
Return, total portfolio, before costs (%) |
6.1 |
-12.6 |
-11.8 |
Return, total portfolio, after costs (%) |
6.0 |
-12.6 |
-11.9 |
Annualised return, total portfolio, after costs, 5 years (%) |
7.4 |
7.5 |
6.9 |
Annualised return, total portfolio, after costs, 10 years (%) |
9.2 |
9.7 |
9.2 |
Currency exposure (%) |
19.0 |
19.9 |
19.3 |
Asset management costs, excluding commission expenses, annual basis (%) |
0.06 |
0.05 |
0.05 |
Asset management costs, including commission expenses, annual basis (%) |
0.09 |
0.08 |
0.08 |
Contacts
Karoline HammarKommunikationschef
Tel:08-46 8 787 75 53karoline.hammar@ap4.seImages
Links
About Fjärde AP-fonden
AP4's mission is to contribute to financial security for current and future pensioners by managing part of the public pension system's buffer. AP4's long-term perspective, responsibility as an owner and strong commitment to sustainability create opportunities for high returns at low cost. In this way, AP4 works for safer 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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