Spotlight on Investors: AP4
17-Aug-2020 4:47:17 PM
AP4 is one of five funds that act as a buffer in Sweden's national pension system. The Pension System was created in 1960, but it was not until 2001 that the current AP fund structure was established, allowing the AP funds to diversify their strategies. One of the key investment rules, set out by the Ministry of Finance, is to consider environmental and ethical matters without compromising the objective of attaining high returns. As of June 30 2020, AP4 had SEK 403.2 billion of assets under management (US$ 46.4 billion).
Through sustainable investments and active ownership, AP4 is able to create sustainable value for its trustees. ESG issues are considered in both its internally and externally managed portfolios. Further, AP1, AP2, AP3 and AP4 collaborate through the Ethical Council to lead engagement with investee companies across issues linked to the Sustainable Development Goals. Finally, AP4 is active in many collaborative initiatives on responsible investing. For example, they joined several of their peers to engage with the Brazilian Embassy reacting to a legislative proposal over Deforestation concerns in 2020.