The Fourth Swedish National Pension Fund ("AP4") made substantial investments during Q1 2014 into two engagement funds established by GO Investment Partners ("GO").
AP4 has invested EUR75m in the GO European Focus Fund, which is a constructive activist investment fund, set up in 2005, that seeks to add significant value for clients by acting as a catalyst for corporate change in quoted small and mid-cap European companies.
AP4 has also invested a further JPY7bn (cEUR50m) in the TMAM-GO Japan Engagement Fund ("the JEF"), doubling its initial investment in the Fund made when it was launched in March 2012. The JEF adopts a culturally effective "Japanese way" of engagement with small and mid-cap Japanese companies, to improve their valuation by addressing strategic, financial and governance issues.
Mats Andersson, CEO, AP4, said:
"AP4 is delighted to make these investments into funds that we feel make a difference. Improving the performance of companies and making them more sustainable fits very well with AP4’s long term investment philosophy. Our experience with the Japan Engagement Fund has been excellent, with returns far outstripping the market, and we have seen real change at Japanese portfolio companies. We look forward to more of this in Japan and also now in Europe".
Steve Brown, CEO, GO, said:
"The backing of AP4 is a powerful endorsement of our constructive approach to improving companies and we are delighted to have them as a new investor in our European Fund. The doubling of their original investment in Japan is also wonderful news. There are excellent opportunities in both Europe and Japan right now and we look forward to capitalising on these for the benefit of AP4 and our other investors".
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.