Good return in the first half of 2024

"The strong performance in the equity markets that ended 2023 continued in the first half of 2024, which was favourable for AP4's portfolio development. The return after costs was 6.9 per cent in the first half of the year, while management costs decreased compared with the previous year," says Niklas Ekvall, CEO of AP4.

"If we extend the perspective to include ten years, which is more relevant to our assignment, AP4 reports a portfolio return of 8.5 per cent on average per year, and since 2001, the start of the reformed pension system, the annual average return is 6.6 per cent. Over time, AP4 has thus made a very significant contribution to strengthening the Swedish public pension system," Niklas Ekvall continues.

"In recent years, AP4 has received a number of awards that we are proud and honored to have received. One of the 2024 awards is Environmental Finance's Sustainable Investment Awards 2024, in the Sovereign Wealth Fund of the Year category, which we received for our work on thematic sustainability investments. The awards over the years are proof that our work is successful, which at the same time motivates us to continue to develop our operations," concludes Niklas Ekvall, CEO of AP4.

Key ratios for AP4’s operations	30 June 2024	30 June 2023	31 Dec. 2023
Fund capital at end of period (SEK bn)	533.3	485.6	499.6
Net result for the period (SEK bn)	34.6	27.7	43.9
Net payments to the pension system (SEK bn)	-0.9	-2.6	-4.8
Return, total portfolio, before costs (%)	7.0	6.1	9.6
Return, total portfolio, after costs (%)	6.9	6.0	9.6
Annualised return, total portfolio, after costs, 5 years (%)	7.7	7.4	8.9
Annualised return, total portfolio, after costs, 10 years (%)	8.5	9.2	8.5
Currency exposure (%)	20.0	19.0	22.0
Asset management costs, excluding commission expenses, annual basis (%)	0.06	0.06	0.06
Asset management costs, including commission expenses, annual basis (%)	0.08	0.09	0.08