AP4 has now published our Annual Report from 2010.
- Fund capital increased SEK 17.1 (31.0) billion, to SEK 212.8 (195.7) billion.
- The total return was 11.0% (21.6) before expenses. The total return after expenses was 10.9% (21.5). The real (inflation-adjusted) total return equalled 8.6% (20.6).
- The real total return averaged 2.0% during the preceding 10-year period, which fell short of the target of 4.5%, mainly as a result of the financial crises of 2000–2002 and 2007–2008.
- The active return, that is, the return exceeding the benchmark index, equalled 0.8 percentage points (1.4) before commission expenses, surpassing the Fund’s 2010 target by 0.3 percentage points (1.0).
- The Fund's net profit for 2010 totalled SEK 21.2 (34.9) billion.
Commenting on Fund performance for the year, CEO Mats Andersson said:
– I am proud to report that for the second year running active management by the Fourth AP Fund surpassed its benchmark index, in 2010 by 0.8 percentage points, corresponding to value added of SEK 1.4 billion. The combined contribution to the pension system totalled SEK 21 billion, and Fund capital increased to almost SEK 213 billion, an all-time high for the Fund since its reorganisation in 2001.
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.