Investing today to secure Swedish pensions tomorrow

Första AP-fonden invests worldwide in various types of assets in order to spread risks and maximise returns. We aim to achieve an improved, risk-adjusted return by diversifying within and between asset classes such as equities, fixed-income securities and alternative investments.

Diversification involves actively weighing up different investment opportunities and adjusting the Fund’s exposure according to market conditions. We manage both Swedish and foreign assets with a long-term investment horizon, focusing in particular on equities in the US and Europe and emerging markets in Asia.

Första AP-fonden maintains a long-term investment perspective that allows us to take greater risks and capitalise on opportunities that require patience. Examples of such investments include property, private equity funds and infrastructure, all of which offer us the potential for attractive returns over time.

Första AP-fonden’s strategy is based on taking financial risks and thereby generating returns over time. Investing in different assets allows us to earn risk premiums, the additional returns we receive as compensation for taking market risks. Our investment decisions focus on identifying the most attractive risk premiums.

The biggest risk in our portfolio comes from the stock market; but this risk premium is expected to yield the highest returns. With our long-term investment horizon and in-house management, we invest in equity risk premiums worldwide so that we can achieve our goals.

Cost efficiency is a key element in Första AP-fonden’s mandate. The Fund ensures that costs are proportionate to the outcomes achieved by maintaining long-term focus on stable, transparent costs. Cost efficiency does not necessarily mean the lowest costs: it is a matter of being fit for purpose and contributing to the Fund’s goals. 

Första AP-fonden actively prioritises cost efficiency and keeping its management costs low, a commitment consistently confirmed by the Government’s annual evaluations of the Fund over the years.

Financial markets are not always fully efficient, creating opportunities for carefully considered active management in order to generate high returns. The efficiency of pricing of securities and assets can vary depending on market conditions, timeframes and the extent of asset analysis.

Första AP-fonden can gain an analytical advantage by focusing on less analysed markets and strategic reallocations when we identify mispricing. Our focus on active management of Swedish companies, particularly small caps, also gives us an edge over foreign investors thanks to our more in-depth market knowledge and lower currency risk.

At Första AP-fonden, we are convinced that we are better positioned to achieve high long-term returns through responsible investments. Considering sustainability aspects in our decisions provides us with a broader understanding of risks and opportunities that may impact expected returns and risk levels.

Companies that are managed well ought to be more profitable over time. Our asset management focuses on efficient use of resources and responsible behaviour. Our ambition is to increase the share of resource-efficient and responsible companies in our portfolio through active stewardship.

We also set clear expectations for the companies in which we invest in order to manage risks and seize opportunities while also limiting adverse impact on people and the environment. Through transparency and active ownership, we aim to strengthen the companies in which we invest, contributing to both long-term returns and sustainable development.