Annual report 2007

• Fund capital was SEK 207.3 billion at 31 December, an increase by SEK 6.8 billion since 31 December 2006.
• Net profi t totalled SEK 4.8 billion for the period, corresponding to total return on assets of 2,5% before expenses. Total return after operating expenses including commission expenses was 2.4 %.
• Return on the listed equity portfolio was 1.8% before expenses, underperforming benchmark index. Active return was –1.2% of listed assets and –1.0% on the total portfolio.
• AP4 has delivered average annual return of 11.3% the last fi ve years, corresponding to real annual return of 9.7%.

Mats Andersson, President of AP4, comments on the full year report for 2007 as follows:

- I would sum up 2007 as a challenging year. The Fund’s performance is not satisfactory and we did not meet our targets for absolute return or active management. The improvements achieved in the fi rst six months were erased by the turbulence in the credit market and the year ended with unsatisfactory active return of –1.0 percentage points. Absolute return from the five-year perspective is clearly acceptable . The Fund’s problem is that active management performance – the capacity to outperform the market measured as index – remains negative. In response to this trend, we have further intensifi ed our change initiative."

The complete full year report for 2007, translated into english, is avaliable on our webpage.