AP4 has now published our Annual Report for 2009.
- Fund capital totaled SEK 195.7 billion (164.7) at 31 December 2009, up SEK 31.0 billion (–42.6) from the preceding year.
- The Fund made a net profit of SEK 34.9 billion (–43.5) in 2009, for a total return on assets of 21.6% (–20.8) before expenses. Total return after expenses was 21.5% (–21.0).
- The active return, that is, the return exceeding the benchmark index, equalled 1.4 (–0.5) percentage points before commission expenses, surpassing the Fund’s 2009 target by 1.0 percentage point. The active return represents a contribution of close to SEK 1.9 billion.
- For the most recent five-year period, the Fund’s real total return after expenses averaged 3.3% (1.5) per annum.
Commenting on Fund performance for the year, CEO Mats Andersson said:
“2009 was a record year for AP4, as we beat all benchmark indexes and achieved a total return of 21.6%. Having completed our thorough change initiative, we are especially gratified to post our best active return since the Fund was assigned its new brief in 2001. However, this must be seen in light of a very weak 2008 – the worst year in the Fund’s history. AP4’s large exposure to equities obviously contributed to the extreme fluctuations in returns. By sticking to our long-term portfolio strategies, though, we were able to recover much of those earlier losses as stock markets worldwide recovered during the past year."
The Fourth Swedish National Pension Fund (AP4) is a government agency. AP4's brief is to manage Fund capital for the best possible return over time and thus support the stability of the pension system.