FJARDE AP-FONDEN /FOURTH SWEDISH NATIONAL PENSION FUND

The Fjarde Ap-Fonden /Fourth Swedish National Pension Fund is an investment management firm based out of Stockholm, Sweden. The fund is one of the five buffer funds in the national pension system of Sweden, which is a “distribution system in which pension contributions paid in by the gainfully employed during the year are used to pay out pensions to pensioners the same year.” The surpluses and deficits from contribution deviations from disbursements are handled by the buffer funds. The Fourth Swedish National Pension Fund’s investment goal is to average 4.5% per year over a 10 year period, which would allow the pension system’s assets and liabilities to balance in the long run. The strategic management active return should average 0.75% per year with an investment horizon of 3 to 15 years. The fund’s tactical management annual active return strives to average 0.5% over a 3 year period. The Fourth Swedish National Pension Fund has had a most recent net profit of SEK 18 billion, bringing its total amount in fund capital to over SEK 310 billion. The fund is currently outperforming its long term return target and has a 6.1% total return after expenses in 2015 with an average of 7.4% post expense that corresponds to a real average return of 6.2%. The Fourth Swedish National Pension Fund has the highest assets allocated in global equities, which alone makes up 40% of its asset allocations, and also allocates in the fixed income assets, Swedish Equities, real estate, and alternative assets, in order of decreasing asset allocations. The fund invests most heavily in the information technology sector, which alone makes up over a fifth of its total asset allocations, and also invests in the health care, consumer discretionary, finance, consumer staples, industrials, energy, and utilities and telecommunications sectors, among other sectors to a lesser degree, in order of decreasing allocation.