Interim Report January - June 2010

• Fund capital totalled SEK 196.2 billion (175.7) at 30 June 2010. Fund capital rose SEK 0.4 billion (11.0) during the first six months, the combination of SEK 2.4 billion (12.7) in profit for the period and SEK –2.0 billion (–1.7) attributable to net payments to the pension system.
• The net profit was SEK 2.4 billion (12.7) for the period, for a total return on assets of 1.3% (7.9) before expenses. The total return after expenses was 1.2% (7.8).
• The active return – that is, the return exceeding the benchmark index – equalled 0.4 (1.0) percentage points before commission expenses. The active return represents a contribution of close to SEK 0.7 billion.
• During the nine and a half years since the pension system was reorganised, the Fund has averaged 2.9% per year in return after expenses, corresponding to an average real (inflation-adjusted) return of 1.3% per year.

Commenting on Fund performance for the period, CEO Mats Andersson said:

- We are pleased we can continue delivering a positive active return following our extensive work for change that the Fund carried out in 2007 and 2008. The Fourth National Pension Insurance Fund paid an absolute return of SEK 2.4 billion for the first six months despite a slightly negative trend in stock markets as measured by global indexes. The Fund outperformed its benchmark index by 0.4 percentage points, thus increasing assets by almost SEK 700 million during the period.

AP4’s complete report for the first six months of 2010 is available here.