Asset management structure
Our operations are conducted in accordance with the AP Funds Act, which stipulates among other things that AP4’s mission is to manage the fund assets in such a way that they generate a long-term high return for the pension system.
The law also requires that asset management be conducted in an exemplary way through responsible investments and responsible ownership. The law further requires that AP4 contributes to sustainable development without compromising on the overarching return objective. The law stipulates investment rules that the AP Funds are to follow and is summarized below.
Investment rules
- Investments may be made in all marketable and tradable instruments on the capital market except commodity-related ones.
- At least 20 per cent of the assets shall be invested in debt securities with low credit and liquidity risk.
- A maximum of 40 % of assets may be exposed to currency risk.
- A maximum of 10 % of the assets may be exposed to a single issuer or group of connected issuers.
- The market value of AP4's shares in listed Swedish companies may correspond to a maximum of two per cent of the total market capitalisation.
- A maximum of 10 per cent of the votes may be owned in an individual listed company (except for real estate companies in which the AP-Fund owned more than 10 per cent of the votes before the IPO).
- A maximum of 40 % of the assets may consist of illiquid assets.
- Illiquid assets may only be owned indirectly through funds, real estate companies or venture capital firms.