Stable return in a changing world

“Given the uncertain and fast-changing market environment, we are satisfied with the first half-year management result. If we extend the time frame, AP4’s portfolio has returned 7.6% per year over the past 10 years and 6.7% per year since the start of the reformed pension system in 2001. This means that AP4 has exceeded its long-term return target of CPI+3% per year and that the long-term return has made a significant contribution to strengthening the Swedish national pension system", says Niklas Ekvall. CEO of AP4.

“The economic situation remains difficult to interpret, to say the least. An important part of this is to continuously maintain a strong focus on enhancing the diversification and robustness of the portfolio in relation to the different economic scenarios identified in our long-term economic analysis. One example is the work done to strengthen the portfolio for a more volatile inflation scenario. Another example is our growing focus on identifying and adjusting the portfolio to the increased concentration risks we see in financial markets”, says Niklas Ekvall.

AP4 is looking forward to a busy and exciting second half of 2025. In addition to the challenging task of managing our investment portfolio on an ongoing basis in a highly interesting market environment, AP4 will finalise two extensive change projects. We are in the midst of preparations for the consolidation of the Stockholm-based AP Funds that the Riksdag decided on in May and that will implemented at year-end. We are in the final phase of implementing a brand new portfolio system”, says Niklas Ekvall.

“It is now our task, with AP1 and AP3, to implement the consolidation of the Stockholm-based AP funds that has been decided with full vigour and great commitment in the best possible way for the pension system. With a new state-of-the-art system platform and an organisation strengthened with new cutting-edge expertise, I feel that AP4 will have very good conditions and an excellent basis for building an even stronger asset management organisation and an even more attractive workplace. “, concludes Niklas Ekvall, CEO of AP4.

Key ratios for AP4’s operations	30 June 2025	30 June 2024	31 Dec. 2024
Fund capital at end of period (SEK bn)	557.7	533.3	548.2
Net result for the period (SEK bn)	11.9	34.6	50.7
Net payments to the pension system (SEK bn)	-2.4	-0.9	-2.0
Return, total portfolio, before costs (%)	2.2	7.0	10.2
Return, total portfolio, after costs (%)	2.2	6.9	10.1
Annualised return, total portfolio, after costs, 5 years (%)	7.8	7.7	5.4
Annualised return, total portfolio, after costs, 10 years (%)	7.6	8.5	9.1
Currency exposure (%)	23	20	19
Asset management costs, excluding commission expenses, annual basis (%)	0.06	0.06	0.06
Asset management costs, including commission expenses, annual basis (%)	0.07	0.08	0.08