Good returns in uncertain times
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.
![Niklas Ekvall, CEO AP4](/data/images/public/3235967/3420830/2ef4d056-273c-4aad-a78e-5d8d44a2e7c8-w_720.jpg)
After the very weak market performance in 2022, the year began with some optimism in the financial markets and an even stronger finish.
"The good return that our portfolio has delivered is the result of the year's favourable financial markets and the ongoing management work we conducted during the year. To a significant extent, this is also due to our many years of work to continuously improve the portfolio's return and risk characteristics," says Niklas Ekvall.
"AP4 was founded in 1974 and we can look back at a successful half-century. Today, we conduct professional global management, but up to the pension reform in 2001, AP4 was essentially a pure asset manager of Swedish equities. This strong and long tradition in management of Swedish equities is still essential in our culture with a strong focus on responsible corporate governance. If we extend the time horizon as far as the start of AP4, i.e. 1974, we have delivered an average annual return of 13 per cent over the past 50 years, something we are proud of," says Niklas Ekvall.
“AP4's cost level for 2023 was 0.08 per cent of assets under management. AP4 conducts cost-effective pension management, and in an international cost comparison, AP4's cost level was 37 per cent lower than that of corresponding pension funds internationally,” says Niklas Ekvall.
"AP4's efforts to manage climate risks in the investment portfolio continue to yield results over time. In 2023, the portfolio's carbon dioxide emissions decreased by a further 11 per cent. Since 2010, this decrease has been as much as 65 per cent," says Niklas Ekvall.
"An increasing share of AP4's portfolio consists of investments with a specific focus on the sustainability transition. In 2023, AP4 carried out an extensive project to update our view of key sustainability trends. The ambition is to refine our tools and strengthen our expertise in order to identify investment opportunities that are expected to provide a good return in the long term, while making a tangible contribution to the transition. In 2023, AP4 made new thematic sustainability investments of SEK 7.6 billion, and since 2020 these new investments amount to SEK 36.8 billion," concludes Niklas Ekvall.
Key ratios for AP4’s operations |
2023 |
2022 |
Fund capital at start of period, SEK bn |
460.5 |
527.6 |
Net flow to national pension system, SEK bn |
-4.8 |
-4.7 |
Net result for the year, SEK bn |
43.9 |
-62.5 |
Fund capital at end of period, SEK bn |
499.6 |
460.5 |
Return after costs, % |
9.6 |
-11.9 |
Active return before costs, % |
-3.4 |
-3.8 |
Annualised return after costs, 5 år, % |
8.9 |
6.9 |
Annualised return after costs, 10 år, % |
8.5 |
9.2 |
Asset management costs operating expenses, % |
0.06 |
0.05 |
Asset management costs, commission expenses, % |
0.02 |
0.03 |
Total asset management costs, % |
0.08 |
0.08 |
Contacts
Karoline Hammar
Tel:08-46 8 787 75 53karoline.hammar@ap4.seImages
![Niklas Ekvall, CEO AP4](/data/images/public/3235967/3420830/2ef4d056-273c-4aad-a78e-5d8d44a2e7c8-w_240.jpg)
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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.
God avkastning i en osäker tid23.2.2024 08:23:07 CET | Pressmeddelande
Fjärde AP-fonden (AP4) redovisar en god avkastning för helåret 2023 på 9,6 procent efter kostnader. Med ett resultat på 43,9 miljarder kronor ökade fondkapitalet till 499,6 miljarder kronor efter att 4,8 miljarder kronor överförts netto till pensionssystemet under året. Portföljens koldioxidutsläpp minskade med 11 procent jämfört med 2022 och AP4 har totalt minskat utsläppen med 65 procent sedan 2010. AP4 tar ansvar som ägare och arbetade i 56 valberedningar under året.
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