Mats andersson

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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