Mats Andersson, CEO AP4 2016-06-06
AP4’s brief is to contribute to the stability of the national pension system through managing Fund capital with the aim of generating the best possible return over time. Investment goals:
Alternative assets 3 % Real estate 7 %
• 4.5 % total return in real terms • 0.75 % active return from the
Strategic management (3-15 years).
Global equities 38 % Fixed income assets 34 %
• 0.5 % annual active return from the
Tactical management (0-3 years).
Swedish equities 19 %
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• E + S + G = Sustainability
• You have to start with Governance, in order to work with E and S.
• AP4’s focus areas: • Governance • Climate change • Real estate • Gender, Childhood and H20
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The Swedish model
The American model
The German model
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Relative return SIXRX against MSCI World in SEK (10 year rolling) 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2010/12/30
2011/06/30
2011/12/31
2012/06/30
2012/12/31
2013/06/30
2013/12/31
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Largest threat to the environment
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Concerns many companies
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Long term – persistent poor growth
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Undermine pension funds’ return
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S&P 500 – stocks ranked by Carbon Footprint
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150 companies excluded
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Exclusion maximum 50% in each sector
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Optimized to track S&P 500
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• Divest
• Decarbonize • Low carbon index
• Invest
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