Very good return for AP4 against the background of strong economic recovery
“The strong economic recovery that began during the second half of 2020 continued with full strength in 2021. A key reason why the recovery has gone so fast and been so strong is the historically rapid development and the mass production of effective vaccines. The very powerful and swift monetary and finance policy measures that have been taken during the past two years to support the world’s economies have also been highly significant,” comments Niklas Ekvall, CEO of AP4.
“AP4’s return since the start of the new pension system in 2001 has averaged 7.2% per year after costs. This exceeds the income index – the index with which the pension system’s liabilities side is indexed – by an average of 4.3% per year since 2001. AP4’s excess return in relation to the income index thus corresponds to SEK 307 billion and entails that AP4 has made a significant contribution to the growth of the AP4 funds’ aggregate buffer capital from 10% of the income pension system’s assets at the start in 2001 to just under 18% at year-end 2021.
“We find ourselves in an uncertain macroeconomic environment, with a number of relatively likely economic scenarios with widely varying outcomes. The tug-of-war between these various scenarios will likely at times lead to nervosity and market turbulence. In general, in the coming years we cannot expect to see the same, favourable investment environment and very favourable returns on financial assets that we have experienced during the past ten years.
“AP4’s work on managing climate risks in our investment portfolio has also generated results over time. As an example, since 2010 we have cut the carbon footprint of our investments in listed equities by 60%, and AP4 has set a target to have net-zero emissions by 2040 at the latest. AP4 also has an ambitious agenda to gradually increase the allocation of investments that contribute to the sustainability transition as well as benefit from it. During 2021 AP4 made such new thematic sustainability investments of SEK 13.7 billion.
“AP4’s cost level for 2021 was 0.08% of assets under management. AP4 strives to conduct its pension management as cost-efficiently as possible, and in an international cost comparison, AP4’s cost level was less than half that for corresponding pension funds internationally,” concludes Niklas Ekvall.
Key ratios for AP4’s operations |
2021 |
2020 |
Fund capital at end of period, SEK bn |
527.6 |
449.4 |
Net result for the year, SEK bn |
85.7 |
39.3 |
Net flow to national pension system, SEK bn |
-7.5 |
-7.9 |
Fund capital at start of period, SEK bn |
449.4 |
418.0 |
Asset management costs, operating expenses, % |
0.05 |
0.06 |
Asset management costs, commission expenses, % |
0.03 |
0.03 |
Total asset management costs, % |
0.08 |
0.09 |
Return after costs, % |
19.2 |
9.6 |
Annualised return after costs, 5 years, % |
11.6 |
9.8 |
Annualised return after costs, 10 years, % |
11.8 |
9.7 |
Contacts
Karoline HammarKommunikationschef
Tel:08-46 8 787 75 53karoline.hammar@ap4.seImages
Links
About Fjärde AP-fonden
AP4:s uppdrag är att bidra till ekonomisk trygghet för dagens och morgondagens pensionärer genom att förvalta en del av det allmänna pensionssystemets buffert. AP4:s långsiktiga perspektiv, ansvarstagande som ägare och stora engagemang för hållbarhet skapar möjligheter för hög avkastning till låg kostnad. På så sätt verkar AP4 för tryggare pensioner.
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Latest releases from Fjärde AP-fonden
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.
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.
Försiktig stabilisering första halvåret 202312.7.2023 14:12:38 CEST | Pressmeddelande
Fjärde AP-fondens (AP4) avkastning för första halvåret 2023 uppgick till 6,0 procent efter kostnader. AP4:s fondkapital uppgick per sista juni 2023 till 485,6 miljarder kronor, att jämföra med 460,5 miljarder kronor vid årets början. Resultatet för första halvåret blev 27,7 miljarder kronor. Under samma period betalades netto 2,6 miljarder kronor från AP4 till pensionssystemet.
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