AP4 raises $7.7b in 2019, posts record returns

Swedish pension fund AP4 raised SEK 75.2 billion ($7.7 billion) in 2019, increasing the total fund capital to SEK 418 billion ($42 billion) at the end of the year, the pension fund recently disclosed.

AP4 saw record returns, which amounted to 21.7 percent after costs, which were 47 percent lower than corresponding international pension funds.

“AP4’s return and result for 2019 are the highest since the start of the pension system in 2001,” said Niklas Ekvall, CEO of AP4. “AP4’s favorable result over time is largely due to the scope to maneuver provided by the buffer funds’ legal mandate, the ability to act long-term and withstand large market movements, and low-liquidity investments that are conducive to long-term returns.”

Ekvall added that active management contributed 4.4 percentage points to the total return. The majority of the active return contribution came from Swedish equities, global fixed income and credits, and real estate.

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