2025 – Good return during a special year for AP4

“2025 was characterised by uncertainty and with the new administration in the USA at the centre of events. A return of 6.3% after costs is good, given the uncertain and rapidly changing market situation during the year”, says Niklas Ekvall, CEO of AP4.

“2025 was a very special year for AP4. This is because our previously initiated change of portfolio system coincided with the consolidation of the Stockholm based AP Funds decided by the Swedish Parliament. This means that AP4 has successfully completed in a single year probably the two largest projects we have ever undertaken. On top of that, we have also skilfully managed our asset portfolio in a highly complex global environment. All in all, this makes me very proud of the efforts of AP4’s employees in 2025”, says Niklas Ekvall.

The Swedish Parliament decided to make changes to the management of buffer capital in the AP Funds. This decision meant, among other things, that the three Stockholm-based buffer funds were to be consolidated into two by transferring AP1’s assets and liabilities to AP3 and AP4 respectively, directly after year-end 2025.

“In total, listed and unlisted assets totalling SEK 511.5 billion were transferred from AP1 to AP3 and AP4 as part of the consolidation. This meant that only SEK 8.7 billion, less than 2 per cent of AP1’s fund capital could not be transferred and instead remains in AP1. AP4 will manage these assets separately until such time as it is possible and appropriate for these assets to be transferred to AP3 and AP4”, says Niklas Ekvall.

The consolidation has been implemented in a cost-effective way for the pension system, which means, among other things, that from as early as 2027 the savings for the pension system are expected to be in the region of SEK 150–200 million annually.

“The change of system is also a multi-year project that has gone through various phases such as requirements specification, procurement, configuration and implementation, to ultimately ensure that the new system platforms could be successfully commissioned in autumn 2025. The project has been carried out in close collaboration with AP3. With the launch of the new portfolio system, AP3 and AP4 have implemented modern, cloud-based system platforms that significantly enhance functionality and efficiency all the way from investment decision to custodian bank”, says Niklas Ekvall.

"AP4 is now entering a new phase. We will once again be able to devote all our energy to managing the buffer capital in the best way possible and continuing to develop AP4. We will also be able to tackle this forward-looking work from a new position of strength. The combination of professional operations and strength that AP4 has built up over the past decade, a new state-of-the-art portfolio system, a larger and broader capital base and competent new employees have strengthened and improved our conditions. AP4 now has everything in place to be able to continue providing world-class professional and cost-effective pension management for a long time to come", concludes Niklas Ekvall, CEO of AP4.

Key ratios for AP4’s operations	2025	2024
Fund capital at start of period, SEK bn	548.2	499.6
Net flow to national pension system, SEK bn	-4.6	-2.0
Net result for the year, SEK bn	34.4	50.7
Fund capital at end of period, SEK bn	578.1	548.2
Return after costs, %	6.3	10.1
Annualised return after costs, 5 years, %	6.1	6.8
Annualised return after costs, 10 years, %	8.0	8.0
Asset management costs operating expenses, %	0.06*	0.06
Asset management costs, commission expenses, %	0.02	0.01
Total asset management costs, %	0.08*	0.07

*) Excluding costs related to the portfolio system implementation and the consolidation of AP Funds, asset management costs operating expenses amounted to 0.05% and total asset management costs amounted to 0.07%.

Against the background of the consolidation of the AP Funds, the tasks that would otherwise have been carried out by the Board of AP1 are instead to be performed by the Board of AP4. It is on this basis that AP4’s Board has approved and signed AP1’s annual report for 2025. AP1's return after costs was 5.6%, net result was SEK 27.9 billion and fund capital was SEK 520.2 billion at the end of 2025.