The Fourth Swedish National Pension Fund (AP4) achieved a 6.3 per cent return (after costs) on its investments in 2025, equating to SEK 34.4bn.

Its annual results revealed that fund capital increased to SEK 578.1bn at the end of the year, after net payments to the pension system of SEK 4.6bn. Following the transfer of assets from AP1 to AP4 at the start of 2026, the fund's capital increased to SEK 833.8bn.

AP4 CEO, Niklas Ekvall, said the year was “characterised by uncertainty” with the new US administration at the centre of events.

“2025 was a very special year for AP4. This is because our previously initiated change of portfolio system coincided with the consolidation of the Stockholm-based AP Funds decided by the Swedish Parliament.

“This means that AP4 has successfully completed in a single year probably the two largest projects we have ever undertaken. On top of that, we have also skilfully managed our asset portfolio in a highly complex global environment. All in all, this makes me very proud of the efforts of AP4’s employees in 2025,” Ekvall said.

The Swedish Parliament (Riksdag) approved the Swedish government's proposal to consolidate the AP funds in May 2025, with legislative amendments taking effect on 1 January 2026.

The decision meant that the three Stockholm-based buffer funds have been consolidated into two, with the assets from AP1 split equally between AP3 and AP4. In addition, the assets and liabilities of the Gothenburg-based Sixth AP Fund (AP6) have been transferred to the Second AP Fund (AP2).

“In total, listed and unlisted assets totalling SEK 511.5bn were transferred from AP1 to AP3 and AP4 as part of the consolidation. This meant that only SEK 8.7bn, less than 2 per cent of AP1’s fund capital could not be transferred and instead remains in AP1. AP4 will manage these assets separately until such time as it is possible and appropriate for these assets to be transferred to AP3 and AP4”, Ekvall explained.

It is expected that the consolidation will generate savings for the pension system of around SEK 150-200m annually from as early as 2027.

Ekvall explained that AP4 has worked in close collaboration with AP3 to implement a “modern, cloud-based system platforms that significantly enhance functionality and efficiency all the way from investment decision to custodian bank”.

"AP4 is now entering a new phase. We will once again be able to devote all our energy to managing the buffer capital in the best way possible and continuing to develop AP4. We will also be able to tackle this forward-looking work from a new position of strength.

“The combination of professional operations and strength that AP4 has built up over the past decade, a new state-of-the-art portfolio system, a larger and broader capital base and competent new employees have strengthened and improved our conditions. AP4 now has everything in place to be able to continue providing world-class professional and cost-effective pension management for a long time to come,” Ekvall concluded.

In addition, AP4 has signed off on AP1’s annual report for 2025, with its return after costs standing at 5.6 per cent, equating to SEK 27.9bn. The fund capital was SEK 520.2bn at the end of 2025.

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