Our mandate
We help to build pension security both now and for the future
Första AP-fonden’s mandate is to manage a portion of Sweden’s pension capital in an exemplary manner.
The Fund’s capital acts as a buffer in years when income pension payments exceed contributions. This means that there is no need for pensions to be impacted by differences from year to year, while also requiring Fund capital to grow over time. This is achieved by means of long-term and sustainable investments in shares, fixed-income securities and alternative investments.
When we invest, we also take responsibility for the risks and opportunities that the future may bring. Our goal is clear – to help provide safe and stable pensions for all, now and in the future
“Första AP-fonden has an important part to play as a buffer for Swedish pensioners”
Promise
We promise to maximise long-term returns while ensuring balanced risk, efficiency and sustainability.
Purpose
We exist to build pension security for us all, now and in the future.
How we work
- Well thought-out investment strategy
- Efficient investment processes
- Responsible stewardship
- Sustainability, an integral part of our business
- Independent risk management and compliance
- Skilled and talented employees
Return targets and objectives
The Första AP-fonden Board of Directors establishes clear, long-term return targets and decides the level of financial risk the Fund should take. Capital is allocated between equities, fixed-income securities and alternative investments, with emphasis on high returns.
More information about Första AP-fonden’s objectives can be viewed here
Balancing pensions
The income pension system is unfunded, which means that pension contributions paid in are used to pay out pensions in the same year. The First, Second, Third and Fourth AP Funds manage buffer capital in order to deal with differences between incoming and outgoing payments.
The brake, or automatic balancing mechanism, is activated if the scheme’s liabilities exceed its assets, which also means that pensions grow more slowly for a time. Responsible management of buffer capital allows Första AP-fonden to help prevent the brake being applied, which results in more stable pensions over time.