Swedish AP1 Embraces Active Stance for 2012

AP1 (Första AP-fonden) is one of fiver buffer funds within the Swedish national pension system. At the end of 2010, AP1 had net assets under management of SEK 218.8 billion. AP1 has been working diligently to reduce equity volatility in its portfolio. A major segment of public investors exposed to high amounts of equity had lackluster performance in 2011. According to AP1’s annual report, its equity portfolio dropped by 9.8% in 2011. AP1 is moving towards a robust approach to increase active asset allocation and shift away from passive management.

Passive equity management, although cheaper in fees, puts portfolios at possible greater risk of volatile equity market swings.

58.6% of assets are managed internally and according to AP1 management that percentage will increase. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]



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