Fourth Swedish National Pension Fund (AP4)

Registry · Top 100 · Public Pension · Sweden — Instantiations rank 94 · elite profile 90th live after AP1. Last researched 11 September 2026. Corrections: info@universalassetowners.com.

• Executive brief
• Mandate & ownership
• Scale & portfolio
• Governance & leadership
• Investment philosophy / strategy
• Climate / ESG / ethics
• Performance & reporting
• Controversies & debates
• Timeline
• Depth annex — AR 2025 folds
• Depth annex — H1 2026 interim
• Depth annex — consolidation & AP1 transfer
• Depth annex — holdings & real assets
• FAQ
• Sources & further reading
• Completeness note

Executive brief

Fjärde AP-fonden (AP4) — Fourth Swedish National Pension Fund — is a Swedish government income-pension buffer fund founded in 1974. Prefer official SEK only: fund capital SEK 885.5 billion at 30 June 2026 (Interim Report 2026); YE2025 fund capital SEK 578.1 billion with FY2025 return after costs 6.3% and net result SEK 34.4 billion. After receiving SEK 255.8 billion from AP1 at the start of 2026, opening capital was SEK 833.8 billion.

Soft researcher strings: AP4 / Fjärde AP-fonden / Fourth Swedish National Pension Fund. Official URL https://www.ap4.se/ (EN hub https://www.ap4.se/en/). ≠ First Swedish National Pension Fund (AP1) (ceased end-2025; assets mainly to AP3+AP4 — do not paste AP1’s closing SEK 520.2 billion onto AP4 seats). ≠ AP7 (Sjunde AP-fonden) (premium-pension default Såfa — separate UAO profile; do not mix AUM or leadership).

Leadership: CEO Niklas Ekvall (employed 2016). INST CIO seat stays empty — official Executive management lists asset-class and corporate heads but no CIO title; do not invent one. Named investment/corporate heads on ap4.se include Jenny Askfelt Ruud (Alternative Investments), Magdalena Högberg (Allocation, Liquid Markets & Analysis), Mattias Cullin (Fundamental Equities), Tobias Fransson (Sustainability, Finance & Communication), and Nicklas Wikström (Risk & Operations).

Researchers care because AP4 is now one of two Stockholm buffer funds after the 2026 consolidation, with audited SEK scale jumping from the high-500s into the mid-800s after the AP1 transfer, plus a completed multi-year portfolio-system replacement. Related UAO hubs: Registry, Top 100, First Swedish National Pension Fund (AP1), AP7 (Sjunde AP-fonden), Norges Bank Investment Management, Government Pension Fund (Thailand).

Mandate & ownership

Under the National Pension Insurance Funds (AP Funds) Act (SFS 2000:192), Fjärde AP-fonden manages part of the Swedish income pension system’s buffer capital. Official mission language (ap4.se / Interim 2026): contribute to the financial security of current and future pensioners in Sweden by managing buffer capital to achieve a high long-term return, and manage fund capital in an exemplary manner through responsible investments and responsible ownership.

AP4 is a government agency. The Swedish Government (Ministry of Finance) appoints the nine-member board (labour-market organisations propose four members) and external auditors, and evaluates fund-asset management annually for Parliament. Buffer funds are more operationally independent than typical Swedish agencies because the AP Funds Act — not annual appropriation directions — is the primary governing statute.

What the mandate is not: AP4 is not the premium-pension default manager (AP7 (Sjunde AP-fonden) / Såfa), not a sovereign wealth fund accumulating commodity surplus, and not the ceased First Swedish National Pension Fund (AP1) entity. From 1 January 2026, AP4 also performs remaining board tasks for a small segregated AP1 residual and hosts AP1’s closing disclosures on ap4.se — that hosting role must not be confused with AP4’s own live fund-capital figures.

Return evaluation frames disclosed in AR 2025: beat the income index (which indexes the income-pension liability) over the period since the 2001 system launch and over the last ten years; and meet the Board’s absolute return target of CPI + 3.5 percentage points, calibrated to long-term system needs, generation neutrality, and medium-term market conditions.

Scale & portfolio

Official SEK fund capital and results

Prefer these dated SEK figures. Do not invent a USD headline AUM. Instantiations previously carried a ~US$42 bn public estimate — that estimate is superseded by official SEK disclosures folded here.

H1 2026 asset-class market value and exposure

*Interim table reports portfolio return / contribution before costs in the asset-class breakdown; headline fund-level H1 return after costs is 6.8% with net result SEK 56.1 billion. Currency contribution is disclosed separately in the Interim (positive contribution amid a weaker krona).

YE2025 illustrative strategic mix (AR graphic)

AR 2025 portfolio graphic (opened primary): Global equities about 35%; Global fixed income about 18%; Swedish equities about 15%; Swedish fixed income about 9%; Defensive equities about 7%; Real assets about 16%. Defensive equities share was increased to 7% of the dynamic normal portfolio (DNP) for 2025 per AR strategy narrative.

Organisation scale (AR 2025 operational data): average number of employees around 68 in 2025 (table context). Total costs 0.08% of assets (operating expenses 0.06%; commission expenses 0.02%). Ownership activity metrics in AR key metrics: 42 Swedish listed-company nomination committees; 82 unlisted investor bodies; 1,334 general meetings voted.

Address (public): Fjärde AP-fonden, Jakobsbergsgatan 16, Box 3069, SE-103 61 Stockholm. Public email info@ap4.se. Phone numbers are omitted from this public-safe profile.

Governance & leadership

Board of Directors (ap4.se)

Nine members appointed by the Government on competence to promote fund management. Two members from employee-organisation nominees and two from employer-organisation nominees; Chair and Vice Chair from the Government’s own nominees.

• Johan Gyllenhoff — Chair 2024; Member since 2023. B.Sc. Economics, Stockholm School of Economics. Head of Group Finance, Vattenfall (other assignments as published on ap4.se).
• Henrik Rättzén — Vice Chair 2024; Member since 2019. B.Sc. Economics.
• Helén Eliasson — Member since 2020. B.A. Social Care; regional politics roles as published.
• Monika Elling — Member since 2020. B.Sc. Economics.
• Lars Fresker — Member since 2026. Trained officer; Kåpan Tjänstepension roles as published.
• Åsa Knutsson — Member since 2026. Bachelor of Science in Economics; Almi AB board as published.
• Per Strömberg — Member since 2022. PhD Carnegie Mellon; Professor of Financial Economics, Stockholm School of Economics.
• Roine Vestman — Member since 2024. Ph.D. Economics, NYU; Professor; Finansinspektionen board as published.
• Aleksandar Zuza — Member since 2020. B.Sc. Economics; Research Officer IF Metall.

Executive management (ap4.se — no CIO title)

• Niklas Ekvall — CEO (Born 1963; Employed 2016). Ph.D. and Docent Financial Economics; M.Sc. Industrial Engineering. Previous: Nordea, Carnegie, AP3, Handelsbanken, Stockholm School of Economics. Other assignments as published (incl. Vasakronan AB board).
• Jenny Askfelt Ruud — Head of Alternative Investments (Employed 2018).
• Mattias Cullin — Head of Fundamental Equities (Employed 2026).
• Magdalena Högberg — Head of Allocation, Liquid Markets & Analysis (Employed 2013).
• Tobias Fransson — Head of Sustainability, Finance & Communication (Employed 2003).
• Nicklas Wikström — Head of Risk & Operations (Employed 2008).
• Anette Segercrantz — Head of HR (Employed 2025).
• Niklas Eideholm — General Counsel (Employed 2026).

INST seats: CEO = Niklas Ekvall; CIO = empty (do not invent). Consolidation communications also name Staffan Hansén as CEO of AP3 alongside Niklas Ekvall for AP4. Historical AP1 final CEO Kristin Magnusson Bernard is documented on the AP1 profile only — not an AP4 seat.

Investment philosophy / strategy

Official AR 2025 / ap4.se framing: long-term economic scenario analysis drives strategic allocation; the portfolio should deliver in the main scenario while remaining acceptable in adverse scenarios. AP4 emphasises a robust, diversified portfolio plus tactical flexibility across equities, fixed income, and currencies when relative prices move.

Asset-management structure (AR): internal management predominates across global and Swedish equities, defensive equities, fixed income, currency, and real assets, with selective external mandates where they add capability. Defensive equities are a distinct sleeve seeking characteristics that drive returns without compromising defensive properties (AR narrative).

2025 operating context: AP4 simultaneously completed a multi-year cloud portfolio-system replacement (front office through custodian, in close collaboration with AP3) and executed the Stockholm buffer-fund consolidation. CEO letter: those were likely the two largest projects AP4 has undertaken, completed while still delivering a 6.3% after-cost return in uncertain markets.

Asset management structure is AP4's assessment that this creates the conditions for achieving an average return over a 40-year period with Within the context of ongoing asset management, decisions are also made on the choice of investment designed for the mandate well-balanced risk-taking that enables an equilibrium strategy, such as active or passive management, in the pension system's assets and liabilities, thereby and whether management should take place avoiding automatic balancing in the pension system.

AP4 uses external management where the asset management strategy The goal of AP4's asset management is to achieve a high long-term return that 2. Medium-term real return target is difficult to pursue internally or where it is not contributes to the pension system's strength and lowers the risk for reduced pensions.

From a medium-term perspective, with a 5–15 year cost-effective to develop internal management. Active interval, it is possible to make assessments in greater management is ideally conducted within strategies detail of macroeconomic parameters such as growth with structurally great opportunities to generate excess Investment philosophy dictates • diversification and inflation.

It is also possible to make a market returns, for example due to structural imbalances in overarching focus • sustainability assessment that takes into account valuation levels, financial pricing or significant barriers to entry. AP4 AP4's asset management is based on the long-term • competent organisation for example.

These assessments form the foundation decides on the choice of management strategy, based needs of the pension system, the statutory assignment • structured processes of a more detailed analysis of expected returns for on an assessment of what is expected to provide the and associated investment regulations and the various asset classes.

This leads to the Board's deci- best return after costs for the chosen strategy. Asset management structure with sions about the Dynamic Normal Portfolio (DNP), which Finally, ongoing investment decisions are made AP4's Board has adopted an investment philosophy three time horizons is the benchmark portfolio for asset management that regarding individual investments and other financial that is based on AP4's mission and the preconditions The asset management structure takes advantage of comprises a weighted market index.

instruments within the asset classes and asset it includes and that constitutes an overall direction for the opportunity to invest over several time horizons. Decisions are also made on a medium-term return management mandate. For each time horizon, the Board stipulates goals and target over 10 years, which is a 3.5% annual real return.

For 2025, this target was raised from 3.0% to 3.5%. Since The Board governs and follows up The investment philosophy is characterised by three interest rate levels normalised in 2022, the conditions for AP4's Board of Directors adopts an annual business essential distinguishing features, i.e.

Long-term real return target normalised returns on assets have improved, enabling plan and the governance documents that regulate to some extent distinguish AP4 and create opportunities From a 40-year perspective, AP4 performs an Asset the medium-term return target, which is supplementary AP4's asset management structure, including for successful asset management.

These features are: Liability Management analysis (ALM analysis) that to the long-term return target, to be adjusted in line with sustainability work. The governance documents are • the ability to act long-term assesses the pension system's long-term need for the long-term return target of a 3.5% annual real return.

reviewed every year and are revised when necessary. • a large degree of freedom to formulate the asset return levels and the need for payments from the AP The Board of Directors has assigned AP4's CEO the task management in the best way within the framework Funds to cover any deficits.

Day-to-day asset management with of managing sustainability matters in the investment of The National Pension Funds (AP Funds) Act the principle of generation neutrality, i.e. that one active return target operations. The CEO reports on a regular basis to the • a portfolio size that enables cost-efficient generation should not receive a higher pension at the The operative asset management thereafter comes Board about how such matters are managed and asset management without limiting investment expense of another generation.

Source fold: AP4 Annual Report 2025 EN — asset management structure / by asset class. Verify against PDF.

Climate / ESG / ethics

Climate & Environment is a stated focus area on ap4.se and in AR 2025. Key metrics (AR): carbon footprint 6% lower in 2025 and down 72% since 2010; SEK 4.2 billion in new thematic sustainability investments during 2025. Home-page narrative also cites a 15% carbon-footprint reduction in 2024 and 70% since 2010 (ap4.se EN — prefer the dated AR 2025 72%-since-2010 figure when citing the annual report vintage).

CEO quote published on ap4.se: if investors want to take real responsibility for climate transition, they must drive transition even in the most CO2-intensive parts of the economy (Niklas Ekvall).

Ethics architecture: Council on Ethics of the AP Funds (joint buffer-fund ethics council); published lists of assets in which fund capital is not invested; corporate-governance focus including Swedish nomination-committee work and global voting (1,334 meetings in AR key metrics). SFDR-related disclosures are linked from ap4.se Sustainability navigation.

Focus area: Climate & Environment Goal Outcome Goal Outcome AP4's portfolio is to reach net zero by 2040 at the latest. Management of quantitative systematic global equities. decrease in global Change in portfolio's CO2e asset management Description of analysis climate emissions emissions in 2025.

Intermediate target to cut CO2e emissions strategies based and implementation. Updated roadmaps for climate-intensive in accordance on identified with the Paris -72% in half by 2030 at the latest compared with 2020. Change in portfolio's CO2e Agreement emissions since 2010.

For performance over time, see table in -6% the Operational Data section on page 84. AP4 has reduced the portfolio's CO2e climate transition emissions through portfolio changes. Changed CO2e emissions Since 2010, emissions have been reduced owing to AP4's portfolio by 50 percentage points due to portfolio Measures the listed equity portfolio's CO2e changes in 2025.

changes and by 22 percentage points as that reduce Portfolio's CO2e emissions emissions based on each company's CO2e emissions weighted according to 0% a result of reductions in emissions by companies. To achieve the climate goals, climate risk as share of global equity AP4's share of ownership in the respective Changed CO2e emissions the companies that AP4 has invested in in the portfolio index (MSCI ACWI).

owing to portfolio must also reduce CO2e emissions in their 45% Measures the respective companies' CO2e companies' reduced emissions in 2025. Portfolio's CO2e intensity emissions in relation to their revenue, AP4 supports organisations such as the as share of global equity weighted according to AP4's portfolio Institutional Investors Group on Climate index (MSCI ACWI).

Change (IIGCC) and Climate Action 100+ (CA100+). The latter aims to influence the 169 companies with the largest carbon New commitments to proactive sustainability investments in the unlisted emissions to take measures to reduce their carbon footprints. investments that Proactive investments portfolio amounted to SEK 3.0 billion.

contribute to and based on sustainability In 2025, AP4 has conducted company benefit from the trends that contribute In 2025, such new investments amounted dialogues on climate goals within the to and benefit from the climate transition transition to a sustainable to SEK 0.2 billion within listed equities and energy sector.

ANNUAL REPORT 34 Focus area: Corporate governance AP4's corporate governance work aims to generate the ownership policy concerning shareholder rights, the highest possible return over time with the goal influence on material matters including sustainability, that the companies' operations will develop and be and the importance of transparent and relevant conducted responsibly.

AP4's corporate governance work is characterised by responsibility, active engagement and Active corporate governance is an effective tool for a long-term approach. creating and preserving shareholder value over time. The tools and conditions for exercising corporate Within the corporate governance framework, AP4 governance vary between different forms of works with matters such as board composition, capital investment.

Ownership tools used by AP4 include structure, structuring of long-term remuneration ongoing dialogue with companies in which AP4 is an programmes, diversity of human capital, the portfolio owner, both individually and in conjunction with other Council on Ethics of the AP Funds.

Read more asset management and external management about the Council on Ethics on pages 28–29. ANNUAL REPORT 26 Five implementation strategies 5. Investing in strong sustainability trends Impact materiality Financial materiality AP4 has five main implementation strategies for AP4 makes thematic investments that contribute Impact materiality describes how the activities of Financial materiality describes how people and the sustainability in asset management: to and benefit from the sustainability transition.

the portfolio companies may have a negative impact environment may affect the financial position of the Understanding and analysis of various sustainability on people and the environment. A concentration of sustainability risks was 1. Measuring and reporting on sustainability aspects can contribute to the return by identifying portfolio's impact were assessed as being greatest identified within the energy, raw materials, power and AP4 continuously evaluates sustainability data for investment opportunities, such as specific sectors within: industry sectors.

Financial risks for the portfolio were use in asset management strategies and in reporting. or companies that can be expected to contribute to assessed as being greatest within: Transparent reporting is also something that AP4 and benefit from the transition to a more sustainable • climate change expects from the companies and organisations in society.

• business conduct • climate change which AP4 is invested. • workers in the value chain • biodiversity Stakeholder dialogue provides better • biodiversity • consumer behaviour 2. Integrating sustainability in understanding • business conduct investment processes AP4's mission involves continuous dialogue and AP4 integrates sustainability factors in its investment collaboration with a number of different stakeholder decisions, tailored to each asset class and invest- groups, which in various ways both influence and ment process.

Source fold: AP4 AR 2025 EN climate / ethics / sustainability sections + ap4.se Sustainability hub.

Performance & reporting

FY2025: return after costs 6.3% vs income index 5.7% and Board target 3.8% (CPI+3.5 context). Net result SEK 34.4 billion; fund capital to SEK 578.1 billion after SEK 4.6 billion net payments to the pension system. Ten-year average return after costs 8.0% per year (AR key metrics).

Long-run contribution (AR portfolio development): opening fund capital at the 2001 system launch SEK 134 billion; 2001–2025 net payments to the system about SEK 68 billion; YE2025 capital SEK 578 billion — excess contribution versus an income-index path cited as over SEK 360 billion.

H1 2026: return after costs 6.8%; net result SEK 56.1 billion; fund capital SEK 885.5 billion after SEK 4.5 billion net payments and the SEK 255.8 billion AP1 transfer. Global equities led asset-class returns (11.4% portfolio return; largest positive contribution).

Transparency stack

• Annual Report 2025 EN PDF (business review + sustainability + fund governance + financials).
• Interim Report 2026 PDF.
• Holdings PDFs: listed shares, unlisted shares, bonds/fixed income (30 Jun 2026 vintages on reports page).
• Press releases: FY2025 results (20 Feb 2026); consolidation completed (21 Jan 2026); H1 2026 via.tt.
• ap4.se EN pages: About, Board, Executive management, Asset management, Sustainability, Reports.

AP4 reported a return for the full year 2025 of 6.3% after costs, a return that we are satisfied could pick up at least slightly in the coming years. with given the uncertain and rapidly changing market situation. The net result for the year was However, hopes of higher growth are more likely to be SEK 34.4 billion, which means that fund capital increased to SEK 578.1 billion at the end of fuelled by fiscal stimulus (not least in Germany) than by any successful productivity-enhancing reforms.

the year after net payments from AP4 to the pension system of SEK 4.6 billion during the year. Unfortunately, the pace of implementation appears Following the transfer of assets from AP1 at the turn of the year, the fund capital increased to to be slow, at least so far, with regard to many of the SEK 833.8 billion at the beginning of 2026.

proposals of varying scope to strengthen Europe's long-term competitiveness that were presented in 2024 by Enrico Letta and Mario Draghi at the request 2025 was a very special year for AP4. This is because the still relatively new administration in the USA has of the European Commission.

our previously initiated change of portfolio system been at the centre of events, with a flurry of new and coincided with the consolidation of the Stockholm- sometimes contradictory policy announcements. It is Robust portfolio and proactive approach based AP Funds decided by the Swedish Parliament.

also increasingly clear that the Trump administration Over the past decade or so, the global economy and Changing portfolio systems that include is serious about changing the world order, at least in the financial markets have undergone a number functionality all the way from the front office to the some areas.

of rather dramatic developments, each of a very custodian bank is the most extensive and complex Now, as we begin 2026, there is once again a different nature. A key lesson to take from this almost project a pension fund can undertake. In terms of degree of optimism, and a feeling that "surely now perpetually uncertain economic backdrop and regularly workload and complexity, the consolidation process it's time for the Swedish economy to pick up".

There shifting market environments is the importance of was an undertaking of similar magnitude. are several indications that this could in fact come to taking a long-term view, combined with the aim of This means that AP4 has successfully completed in pass. Swedish interest rates have been cut and we can building a robust and diversified portfolio.

The latter a single year probably the two largest projects we have also expect significant real wage increases in 2026. is a task that needs to be approached with great ever undertaken. On top of that, we have also skilfully In addition, fiscal policy in 2026 will be expansionary, humility, recognising that it will never be fully mastered managed our asset portfolio in a highly complex global involving tax cuts, increased public spending and and understanding that it is work that will never be environment.

All in all, this makes me very proud of the greater investment. The portfolio's risk and return characteristics efforts of AP4's employees in 2025. Taken together, these stimuli should have a need to be continuously analysed, developed and substantial positive impact on domestic consumption adapted to a constantly changing and uncertain global A degree of optimism and USA still and Swedish economic activity.

centre of attention making assumptions, however. The global situation AP4 uses a long-term economic scenario analysis At the beginning of 2025, there was some optimism remains highly uncertain. It would come as no surprise as a basis for the strategic allocation.

Source fold: AP4 AR 2025 CEO letter and portfolio-development pages.

Controversies & debates

Official attributable actions first. The dominant 2025–2026 public policy event for AP4 is the Parliament-mandated consolidation of Stockholm buffer funds: AP1 ceased; assets/obligations transferred mainly to AP3 and AP4; AP6 transferred into AP2. AP4 discloses project cost/complexity (portfolio system + consolidation) and expected system savings of about SEK 150–200 million annually from 2027 (CEO letter / consolidation communications).

AP4’s board signed AP1’s 2025 annual report because remaining AP1 board tasks shifted to AP4 under the transition rules — an unusual governance footprint that researchers should cite from ap4.se About AP1 / AR texts rather than secondary speculation.

Secondary press (label as secondary): coverage of Northvolt and other Nordic industrial exposures in the broader AP-fund complex appeared around consolidation reporting. Prefer AP4’s own holdings PDFs and AR notes for position facts; do not invent controversy narratives not grounded in opened primaries.

Climate/engagement debates: AP4’s published stance emphasises transition engagement in high-emitting parts of the economy rather than solely exclusion. Exclusion lists remain published for categories where fund capital is not invested — compare AR “Assets in which fund capital is not invested” with Council on Ethics outputs.

Timeline

• 1974 — Fjärde AP-fonden founded to manage part of Sweden’s public pension capital (ap4.se).
• 2001 — New national pension system launch; AP4 opening fund capital SEK 134 billion (AR 2025).
• 2010→2025 — Portfolio carbon footprint reduced 72% since 2010 (AR 2025 key metrics).
• 2016 — Niklas Ekvall employed as CEO (ap4.se Executive management).
• 2024–2025 — Multi-year portfolio-system replacement with AP3; cloud platforms commissioned autumn 2025 (AR CEO letter).
• 2025 — Riksdag decides Stockholm buffer consolidation; AP4 FY return 6.3% after costs; fund capital SEK 578.1 billion at YE.
• 1 Jan 2026 — Legislative changes in force; AP1 assets/obligations transfer to AP3+AP4; AP4 opening capital SEK 833.8 billion after SEK 255.8 billion inflow.
• 21 Jan 2026 — AP3/AP4 consolidation success press (~SEK 511.5 / ~510 billion transferred from AP1).
• 20 Feb 2026 — AP4 (and AP1) 2025 annual reports published; AP4 board signed AP1 AR 2025.
• 30 Jun 2026 — H1 fund capital SEK 885.5 billion; H1 return after costs 6.8%; net result SEK 56.1 billion.
• Feb 2027 (scheduled) — AP4 annual report for 2026 expected (H1 press note).

Depth annex — AR 2025 folds

Opened Annual Report 2025 EN folds below. Figures remain SEK-denominated. Narrative is condensed from the PDF text layer — verify against the live PDF for citation.

AP4 reported a return for the full year 2025 of 6.3% after costs, a return that we are satisfied could pick up at least slightly in the coming years. with given the uncertain and rapidly changing market situation. The net result for the year was However, hopes of higher growth are more likely to be SEK 34.4 billion, which means that fund capital increased to SEK 578.1 billion at the end of fuelled by fiscal stimulus (not least in Germany) than by any successful productivity-enhancing reforms.

the year after net payments from AP4 to the pension system of SEK 4.6 billion during the year. Unfortunately, the pace of implementation appears Following the transfer of assets from AP1 at the turn of the year, the fund capital increased to to be slow, at least so far, with regard to many of the SEK 833.8 billion at the beginning of 2026.

proposals of varying scope to strengthen Europe's long-term competitiveness that were presented in 2024 by Enrico Letta and Mario Draghi at the request 2025 was a very special year for AP4. This is because the still relatively new administration in the USA has of the European Commission.

our previously initiated change of portfolio system been at the centre of events, with a flurry of new and coincided with the consolidation of the Stockholm- sometimes contradictory policy announcements. It is Robust portfolio and proactive approach based AP Funds decided by the Swedish Parliament.

also increasingly clear that the Trump administration Over the past decade or so, the global economy and Changing portfolio systems that include is serious about changing the world order, at least in the financial markets have undergone a number functionality all the way from the front office to the some areas.

of rather dramatic developments, each of a very custodian bank is the most extensive and complex Now, as we begin 2026, there is once again a different nature. A key lesson to take from this almost project a pension fund can undertake. In terms of degree of optimism, and a feeling that "surely now perpetually uncertain economic backdrop and regularly workload and complexity, the consolidation process it's time for the Swedish economy to pick up".

There shifting market environments is the importance of was an undertaking of similar magnitude. are several indications that this could in fact come to taking a long-term view, combined with the aim of This means that AP4 has successfully completed in pass. Swedish interest rates have been cut and we can building a robust and diversified portfolio.

The latter a single year probably the two largest projects we have also expect significant real wage increases in 2026. is a task that needs to be approached with great ever undertaken. On top of that, we have also skilfully In addition, fiscal policy in 2026 will be expansionary, humility, recognising that it will never be fully mastered managed our asset portfolio in a highly complex global involving tax cuts, increased public spending and and understanding that it is work that will never be environment.

All in all, this makes me very proud of the greater investment. The portfolio's risk and return characteristics efforts of AP4's employees in 2025. Taken together, these stimuli should have a need to be continuously analysed, developed and substantial positive impact on domestic consumption adapted to a constantly changing and uncertain global A degree of optimism and USA still and Swedish economic activity.

centre of attention making assumptions, however. The global situation AP4 uses a long-term economic scenario analysis At the beginning of 2025, there was some optimism remains highly uncertain. It would come as no surprise as a basis for the strategic allocation.

The aim is that the economy would start to pick up again in for events to occur outside Sweden that dispel this to secure, as far as possible, the portfolio's return Sweden following a prolonged slump. This proved budding optimism and push back the hopes of an potential in the main scenario of the analysis, while not to be the case.

Instead, 2025 was characterised economic upturn once more. also offering at least acceptable characteristics for by uncertainty and a feeling that in many areas we There are also some positive signs for the rest of the other scenarios, not least the more negative ones.

In many ways, Europe that growth, which has been structurally weak, Taking this approach, AP4 has gradually changed, ANNUAL REPORT 5 adapted and improved the characteristics of the transferred from AP1 to AP3 and AP4 as part of the completion of these major projects, AP4 is now investment portfolio over many years.

This meant that only SEK 8.7 billion, entering a new phase. We will once again be able to Maintaining this long-term perspective is key, but less than 2 per cent of AP1's fund capital, could not devote all our energy to managing the buffer capital it is equally important to ensure the flexibility of the be transferred and instead remains in AP1.

AP4 will AP4 has successfully in the best way possible and continuing to develop AP4. asset management organisation to quickly adapt the manage these assets separately until such time as completed in a single year We will also be able to tackle this forward- portfolio's risk and positioning to more temporary it is possible and appropriate for these assets to be looking work from a new position of strength.

The year 2025 transferred to AP3 and AP4. probably the two largest combination of professional operations and strength contained periods of varying dynamics, as well as fairly It is also pleasing to report that it was possible to projects we have ever that AP4 has built up over the past decade, a new large relative price changes across different asset prepare and implement the complex consolidation undertaken.

state-of-the-art portfolio system, a larger and classes. This has provided interesting opportunities of the Stockholm-based AP Funds while at the same broader capital base and competent new employees for our asset management to actively adjust our asset time maintaining focus on the core business of Niklas Ekvall, CEO have strengthened and improved our conditions.

AP4 allocation within and between equities, fixed income managing the fund capital for the greatest benefit of now has everything in place to be able to continue and currencies during the year. In addition, the consolidation providing world-class professional and cost-effective has been implemented in a cost-effective way for the pension management for a long time to come.

Successful consolidation of the pension system, which means, among other things, The workload on AP4's employees has been Stockholm-based buffer funds that from as early as 2027 the savings for the pension extremely high for virtually all of 2025. Despite this, In 2025, the Swedish Parliament decided to make system are expected to be in the region of SEK we have never lost focus on delivering on our mission changes to the management of buffer capital in the 150–200 million annually.

functionality and efficiency all the way from and tasks. We have pulled together and been there AP Funds. This decision meant, among other things, AP3 and AP4 would like to thank AP1 and investment decision to custodian bank. I've said it many times that the three St Market development and Macroeconomic background The Swedish economy began the year weakly but were further strengthened by narrowing credit spreads, which particularly favoured bonds with high credit portfolio return in 2025 showed increasingly clear signs of recovery during the ratings.

The currency market was characterised by a second half. GDP increased by around 1.5–2.0% for the weakened dollar and a clearly strengthened krona. year as a whole, driven mainly by consumption and renewed investment activity. The rate of inflation (CPIF) Broad return in 2025 fell back to around the Riksbank's target, allowing for The portfolio returned 6.3% after costs in 2025, The financial markets performed strongly in 2025 despite significant macroeconomic interest rate cuts during the year.

The labour market corresponding to a net result of just over SEK 34 uncertainty caused by geopolitical friction, increased trade barriers and shifting monetary was weak, but stabilised gradually towards the end of billion. All major asset classes, with the exception of policies.

Source fold: AP4 Annual Report 2025 EN PDF (ap4.se/globalassets/rapporter-och-innehav/2025/ap4-annual-report-2025-eng.pdf). Verify against the live ap4.se page or PDF before citing beyond this profile.

Depth annex — H1 2026 interim

Opened Interim Report 2026 and H1 press narrative. Headline fund capital SEK 885.5 billion; return after costs 6.8%; net result SEK 56.1 billion; AP1 transfer SEK 255.8 billion; net payments SEK 4.5 billion.

Stable management in an uncertain market AP4's portfolio returned 6.8% in the first half of 2026, with a net result of SEK 56.1 billion. Fund capital increased to SEK 885.5 billion at mid-year, after SEK 4.5 billion was transferred from AP4 to the national pension system during the first six months of the year and SEK 255.8 billion was transferred from AP1 at the beginning of the year.

The half-year result is satisfactory and demonstrates stable management in an uncertain market. Market dynamics difficult to analyse a little more than usual, when the management task point for their management have become increasingly The management of AP4's investment portfolio has been carried out with a partly new and significantly concentrated, in some cases to the point where it was characterised by market dynamics that were larger investment portfolio and in a completely new can be argued that they no longer offer effectively difficult to analyse, not dissimilar from the first half system environment.

Just as then, we initially experienced positive developments have also created large differences sentiment, with the hope of improved economic A changing environment places new demands on in valuations and profit expectations. Many of these activity in Sweden and in the wider environment.

diversification differences can of course be justified by differences in However, after a few months, positive sentiment Over the past nearly two decade, we have experienced economic development and future potential, but there turned into major concern owing to geopolitical events several tumultuous events such as the financial crisis, is no escaping the fact that differences in some places with sharply falling stock markets and rising interest the euro crisis, refugee flows, the pandemic and war.

rates, after which we saw a tangible recovery from If anything, uncertainty has increased in recent years The considerable uncertainty and the large mid-April onwards. with the escalation of several geopolitical hotspots fluctuations in the financial markets in recent years, However, despite similar dynamics, the underlying and even greater pressure for a change in the current combined with increased market concentration, factors influencing markets this year have differed trade and security regime.

In addition, we have seen an emphasise the importance of being able to think greatly from those that had the greatest impact on explosion in the development of artificial intelligence, long-term and constantly focus on the characteristics markets last year. In 2025 it was about tariffs and but still with very great uncertainty about what it will and robustness of the total portfolio.

It is also an concern about a global trade war, while in 2026 it actually mean for the real economy in the short and environment that requires thought if the aim is to has been about military intervention, with the US and long terms. create 'true' diversification benefits in a portfolio, and Israel's war of aggression against Iran the major factor.

Major political and economic uncertainty, combined not least an understanding that the driving force for A clear common denominator, however, is the US with the rapid development of artificial intelligence, diversification is not the number of assets, but the fact administration's changing view of the current world has led to a fast-moving market trend in recent years that the assets in the portfolio have fundamentally order, as well as its new capricious, transactional way in which a fairly narrow range of companies, sectors different characteristics, at least in some dimension.

and regions have had very good returns, while large As a basis for the strategic allocation, AP4 uses In this difficult market environment, AP4's parts of the rest of the market have experienced long-term economic scenario analysis, and we have organisation has continued to manage its investment significantly weaker performance.

One consequence been applying this approach for several years to portfolio in a professional and ambitious manner. As of this is that several of the standard market value gradually adapt and improve the portfolio. The current always, this makes me proud. This year, perhaps even weighted indices that many investors use as a starting uncertainty is reflected in AP4's scenario analysis in INTERIM REPORT 2026 5 that, in recent years, we have identified an unusually Funds' management of the buffer capital of the income in such a 'clean' system, there is a desire to influence can implement.

Against this background, it is very large number of quite different scenarios, all of which pension system. the level of an individual's future pension in relation gratifying that we are now gradually beginning to have had reasonably high probability. Based on this The latter led to a decision by the Riksdag in spring to the salary they receive when they work, the level reap the benefits of this major investment in our uncertainty, the ambition has been to strengthen the 2025 to consolidate the management, which was then of contributions will come directly into focus.

Following the system change, AP3 portfolio by maintaining as much of the portfolio's implemented at the 2025/26 year-end. Regarding the is because the level of contributions and the age at and AP4 now have modern, cloud-based system long-term return potential as possible, while also question of how any surplus should be handled, this which you retire are the main 'levers you can pull' to platforms that significantly improve our ability to offering better diversification through protection too has now been resolved following the Riksdag's influence the size of the pension.

This is a fact that enhance functionality and efficiency all the way from against the adverse scenarios we have identified. We recent decision to introduce a surplus distribution sometimes tends to be forgotten in the debate, as investment decision to custodian bank.

then combine this long-term approach with a more at the 2026/27 year-end. This mechanism has come well as the fact that a pension system reflects how During 2026, AP4 is gradually entering a new phase opportunistic attempt to seize tactical opportunities, the labour market works.

Consequently, many of as we complete the above-mentioned consolidation which inevitably arise in the kind of large market the inequalities that different groups perceive in the and change of portfolio system. In this phase, we movements that we have experienced in recent years.

pension system often stem from the way the labour will once again be able to devote all our energy to market works, and should therefore perhaps also be managing the buffer capital in the best way possible Increased focus on the pension system AP4 now has everything in place addressed through it, rather than trying to address and continuing to develop AP4.

We will also be able Compared to most other countries, Sweden has a to be able to continue providing them through a fundamentally well-functioning to tackle this more forward-looking work from a new well-functioning pension system, in my opinion. The combination of professional professional and cost-efficient said, it is of course important to regularly review the operations and the strength that AP4 has built various parts of the pension system to ensure that management for a long time to Stronger conditions for the future up over the past decade, a new state-of-the-art it is as well adapted as possible over time to the come.

In recent years, AP4 has focused intensively on portfolio system, a broader capital base and skilled changes that are taking place in society. A pension simultaneously implementing a new portfolio system new employees have strengthened and improved Niklas Ekvall, CEO system regulates obligations and rights over several and consolidating the Stockholm-based buffer funds.

Source fold: AP4 Interim Report 2026 PDF + via.tt H1 2026 press + ap4.se EN home key ratios. Verify against the live ap4.se page or PDF before citing beyond this profile.

Depth annex — consolidation & AP1 transfer

Parliament 2025 reforms in force 1 January 2026 consolidated three Stockholm buffer funds into two. First Swedish National Pension Fund (AP1) ceased; AP3 and AP4 received listed and unlisted assets totalling about SEK 511.5 billion (AP4 share SEK 255.8 billion). Residual ~SEK 8.7 billion stayed segregated under AP4 board transitional rules. ≠ AP7 (Sjunde AP-fonden).

Consolidation of AP Funds In 2025, the Swedish Parliament decided to make changes to the management Transfer of assets at the beginning of 2026 of buffer capital in the AP Funds. This decision means, among other things, that the three Stockholm-based buffer funds are consolidated into two by transferring AP1's assets and liabilities to AP3 and AP4 respectively, while the AP3 – Original AP1 – Original capital AP4 – Original capital capital assets and liabilities of Gothenburg-based AP6 are transferred to AP2.

The SEK 255.8 billion SEK 255.8 billion legislative changes enter into force on 1 January 2026. transferred from transferred from AP1 to AP3 AP1 to AP4 Assets Assets The year was dominated by the consolidation tasks that would otherwise have been performed by from AP1 from AP1 work, where the focus has been on ensuring an AP1's Board of Directors shall instead be performed orderly and responsible handover from AP1 to AP3 by AP4's Board of Directors.

This extensive work has been carried out background of AP4's Board of Directors adopting and with close collaboration between the three AP signing AP1's annual report for 2025. Following the Transferred Funds, the special investigator appointed by the transfer of assets from AP1 to AP3 and AP4 at the to AP3 government and the Ministry of Finance.

During the beginning of 2026, assets of SEK 8.7 billion remained 2025 wind-down period, AP1 has continued to carry in AP1, which will be managed separately by AP4 from out its ongoing asset management activities as an 2026. Segregated assets corresponded to less than independent authority.

2% of AP1's closing fund capital in 2025. Segregated Transferred At the beginning of 2026, AP1's assets and assets consist mainly of unlisted funds for which it to AP4 liabilities were transferred to AP3 and AP4. Of AP1's is not deemed cost-effective or otherwise beneficial closing fund capital in 2025 of SEK 520.2 billion, listed equities, fixed income assets and unlisted to the pension system to transfer these assets to AP3 and AP4.

Certain equities, of very limited value, AP3 AP1 AP4 investments with a total value of SEK 511.5 billion are under sanction or are delisted and therefore were transferred in equal shares to AP3 and AP4. cannot be moved but remain under segregated Remaining in Segregated management This corresponded to more than 98% of AP1's closing management.

A description of the disclosures AP4 shall manage these segregated assets in the relating to the consolidation is provided in Note 1 on best interests of the pension system and, where page 47. A summary of the transfer is provided in possible and appropriate, transfer the segregated Segregated management Note 22 on page 63.

assets and the proceeds received from such assets SEK 8.7 billion remains in segregated The government has decided that certain assets in equal shares to AP3 and AP4. Managed by AP4 and transferred can be managed separately for a transitional period. agreed in part on the collaboration needed for AP4's in equal shares to AP3 and AP4.

This segregated management remains subject to task of managing and ultimately transferring the the law governing AP1 in certain aspects, but the segregated assets. ANNUAL REPORT 11 Changes to the income pension system (Ds 2025:24) was published, which detailed a proposal Other noteworthy changes to The introduction of a gas in the pension system to introduce a gas The consolidation of the AP Funds - successfully completed by the Stockholm-based funds - Fjärde AP-fonden About AP4 About AP4 Our mission Our history The pension system About AP1 Our stakeholders Board of Directors Executive management Remuneration Asset management Asset management Asset management structure Investment philosophy Return targets Asset management cost Portfolio and risk Sustainability Sustainability Common values Sustainability work over time Climate & Environment Corporate governance Council on Ethics of the AP-Funds AP4 does not invest in EU Sustainable Finance Disclosure Regulation (SFDR) News News Press releases and news Image bank Procurements Integrity policy Reports Reports Annual reports Interim reports Holdings All reports Archive Career Career Work at AP4 Meet our co-workers Student Available positions sv en Search Search About AP4 Menu About AP4 Our mission Our history The pension system About AP1 Our stakeholders Board of Directors Executive management Remuneration Asset management Menu Asset management Asset management structure Investment philosophy Return targets Asset management cost Portfolio and risk Sustainability Menu Sustainability Common values Sustainability work over time Climate & Environment Biodiversity Corporate governance Council on Ethics of the AP-Funds AP4 does not invest in EU Sustainable Finance Disclosure Regulation (SFDR) News Menu News Press releases and news News Press releases Image bank Procurements Integrity policy Reports Menu Reports Annual reports Interim reports Holdings All reports Archive Career Menu Career Work at AP4 Meet our co-workers Student Available positions sv en Aktuellt Nyheter och pressmeddelanden Pressmeddelanden The consolidation of the AP Funds - successfully completed by the Stockholm-based funds The consolidation of the AP Funds - successfully completed by the Stockholm-based funds Press release 21 January 2026 At the beginning of 2026, the transfer of assets from the First Swedish National Pension Fund (AP1) to the Third and Fourth Swedish National Pension Funds (AP3 and AP4) was carried out.

The transfer was executed as part of the consolidation of the "AP Funds", as decided by the Swedish Parliament in 2025, which came into effect on 1 January 2026. A total of approximately SEK 510 billion in listed and unlisted assets was transferred at year-end from AP1 to the AP3 and AP4.

This corresponds to just over 98 per cent of AP1's total assets at year-end. The transfer was made in equal parts to AP3 and AP4. Staffan Hansén and Niklas Ekvall, CEOs of AP3 respectively AP4: "The intense and extensive preparations for the consolidation during 2025 is now completed by the three AP Funds and has been challenging but highly successful.

We are proud to say that, in cooperation with the Government appointed special investigator, we have managed to implement the consolidation so effectively and in such a short period of time." The consolidation was prepared and executed while maintaining full focus on the core business: managing the fund capital to the greatest possible benefit of the pension system.

Furthermore, the consolidation has been implemented in a cost-effective manner for the pension system, meaning that from 2027 onwards, annual savings are expected to amount to SEK 150–200 million. Less than 2 per cent of the fund capital was not transferred and therefore remains within AP1.

AP4 will manage these remaining assets separately for the greatest benefit of the pension system. When possible and appropriate, these segregated assets will be transferred in equal parts to AP3 and AP4. The segregated assets consist mainly of unlisted funds for which it has not been deemed cost effective or otherwise beneficial for the pension system to transfer to AP3 and AP4.

Certain equities of very limited value that are subject to sanctions or delisted also cannot be transferred and will remain under separate management. The consolidation work has focused on ensuring an orderly and responsible handover from AP1 to AP3 and AP4. It has been carried out in collaboration with the Government appointed special investigator, the AP Funds' auditor, and the Ministry of Finance.

During the winding down period in 2025, AP1 continued to conduct its ongoing asset management operations as an independent authority. AP3 and AP4 wish to thank AP1 and its employees for the cooperation during 2025 to implement the consolidation in a responsible manner.

Source fold: AP4 consolidation press 21 Jan 2026; AR 2025 consolidation/CEO letter; FY2025 results press. Verify against the live ap4.se page or PDF before citing beyond this profile.

Depth annex — holdings & real assets

AP4 publishes dated holdings PDFs on the Reports page. Opened vintages for this profile include English listed shares and participations, unlisted shares and participations, and bonds/other fixed-income assets at 30 June 2026, plus the Annual Report 2025 EN portfolio narrative.

Real assets (~14.9% H1 2026 exposure; ~16% in YE2025 illustrative mix) include property and infrastructure platforms historically shared among AP funds (e.g. Vasakronan — CEO Ekvall lists a Vasakronan AB board assignment on the Executive management page). Prefer the unlisted holdings PDF for current line items rather than inventing stakes.

Listed sleeve: global equities were the largest H1 2026 sleeve (SEK 333.7 billion MV; 37.7% exposure) and the largest return contributor. Swedish equities remain a material home-market allocation (15.4% H1 exposure). Defensive equities (7.6%) are disclosed as a separate sleeve.

Asset management by asset class: Global equities Global equities – with systematic sustainability strategies AP4's global equity portfolio is broad, diversified the AP4 Alignment Score, assesses the positioning Market trends and AI and designed to deliver a long-term stable excess of companies in the climate transition by evaluating A dominant theme during the year has been the return.

The internal systematic element concen- how well they are aligned with the 2°C target and how strong growth in AI-related investments, such as Pontus Lidbrink / William Gan / trates on continuously implementing and further they are expected to be impacted by a future energy graphics cards, data centres and energy infrastructure.

Head of Systematic Analyst, Systematic developing AP4's sustainability strategies, based on transition, and it rewards those companies that invest Despite the portfolio's broad spread, there is a Equities equities a data-driven investment process. in research, development and innovation to reduce concentration in the ten largest holdings, where eight their climate impact.

of these are directly linked to AI or AI-driven transition. Management mainly takes place internally and AP4 continuously analyses the impact of various Many established software companies are now facing Strategy: Includes systematic quantitative systematically using quantitative methods.

The climate parameters on the portfolio and we seek competition from start-ups that are building their management combined with fundamental management of climate-intensive sectors is handled to reduce the systematic risks in the portfolio and business around the latest AI technology," says William company selection in climate-intensive sectors.

An alpha platform, emerging markets separately by AP4's fundamental equities team, as to strengthen the portfolio's long-term resilience. and unlisted equities are managed through described on page 32. In addition, an alpha platform We also monitor related areas such as biodiversity, external funds.

and emerging markets are managed externally. physical climate-related risks and global water At the same time, the market has been flipped, Sustainability in asset management: Unlisted equities are also managed through scarcity," says William Gan, Systematic equities with traditional quality companies, those with stable Implements low-carbon strategies, fundamental external funds.

cash flow and high profitability, performing weaker company selection in resource-intensive than the broad indexes. Some of our strategies have sectors, conducts company dialogues in Sustainability strategies and climate targets Return and portfolio structure had significant exposure to quality companies, but collaboration with other investors and votes AP4's climate strategies are based on the Creating a portfolio that generates a stable excess thanks to the portfolio's diversification, the return has at shareholder meetings.

analysis of detailed company-specific data, and the return relative to the benchmark index is central been compensated from other parts of the portfolio," management strategies are continuously developed to us. History shows that we have done well in this says Pontus Lidbrink.

as new insights and better measurement methods respect, but we aim to continue our development. By integrating climate data portfolio is currently based on several independent External management Share of portfolio 2025 Return 2025 throughout the investment process, we create a alpha sources and management strategies, creating a Elements of the portfolio are managed externally, diversified portfolio that reduces climate impact while robust and well-diversified structure that stands firm mainly in those areas where we believe specialist 17.5 delivering a stable return," says Pontus Lidbrink, Head in various market conditions.

Source fold: AP4 holdings PDFs 30 Jun 2026 + AR 2025 asset-class / market pages. Outbound: https://www.ap4.se/en/reports/

Depth annex — long-run return & operational data

AR 2025 operational annexes summarise multi-year returns, portfolio allocation history, HR/environment metrics, stakeholder dialogue, portfolio risks, voting statistics, carbon-footprint tables, and TCFD-aligned tables. Researchers downloading the full PDF should treat those annex tables as the authoritative numeric grid; this profile folds only narrative already opened in the text layer.

EU's decision not to suited to carbon capture as part of the solution to Jan Petersson / Fredrik Skoglund / Senior Equity Manager, Portfolio Manager, These include energy and utilities companies, manufacture fossil fuel-powered cars in Europe after tackle the high levels of emissions.

During the year, Fundamental equities Fundamental equities basic industries such as mining, forestry, steel 2035 has been pushed back," says Fredrik Skoglund, for example, the first large-scale commercial carbon and cement, transport companies and vehicle Portfolio Manager, Fundamental equities.

capture facility was launched in Brevik, Norway, by manufacturers. German company Heidelberg Materials, which is one of During these turbulent years for the climate AP4's largest holdings in the climate-intensive sectors. In order to warrant a place in AP4's portfolio, a transition, AP4 has maintained, and will continue to The company has taken things further and is now company must, in our assessment, have an ambitious maintain, an ambitious investment assessment of the building an even larger carbon capture facility in the and realistic energy transition plan in place.

At the conditions for the transition, regardless of how the UK," says Fredrik Skoglund. same time, we take a dose of economic realism into political winds are blowing. We have always chosen account when making our investments. We invest to be invested in the energy sector, provided we have Based on our thematic analysis, we have also had with the aim of reducing carbon emissions, but not seen that the companies we are investing in have a strong focus on the entire value chain from the at the expense of returns.

An important aspect of our sufficiently ambitious transition programmes, even if production of renewable energy to its transmission management, therefore, is finding companies where they are currently extracting oil and gas. We are not to the increasingly energy-intensive data centres that the energy transition provides good opportunities to wavering in our transition ambitions, even if the winds, are the result of the rapid development of artificial generate a return," says Jan Petersson, Senior Equity for now at least, are blowing in a different direction.

The energy consumption for this is Manager, Fundamental equities. The climate transition is too important to be viewed expected to double by 2030, which will require a major from an opportunistic perspective, while at the same expansion of the energy grid," concludes Jan Petersson.

While the climate transition has been the focus of time we have never abandoned the principle of striving many investors globally for a number of years, the for the most long-term sustainable return possible," focus has shifted sharply since Donald Trump took says Jan Petersson.

over the presidency of the United States. One of Trump's mantras has been 'drill, baby, drill', along with During the year, we began active management the repeal of the Inflation Reduction Act and the US of the automotive sector within the active global withdrawal from the Paris Agreement.

We have performed USA's biggest asset managers have also chosen to a major internal analysis of the cement industry, leave international cooperation organisations where which accounts for around 6% of the world's carbon they had been working together to persuade industry emissions, but at the same time is a vital industry to reduce its emissions, for fear of reprisals from the for economic growth through the construction of new administration.

ANNUAL REPORT 33 Metrics and goals: Focus area: Climate & Environment Goal Outcome Goal Outcome to reach net zero by 2040 at the latest. t of quantitative systematic global equities. decrease in global Change in portfolio's CO2e asset management Description of analysis climate emissions emissions in 2025.

Intermediate target to cut CO2e emissions strategies based and implementation. Updated roadmaps for climate-intensive in accordance on identified with the Paris -72% in half by 2030 at the latest compared with 2020. Change in portfolio's CO2e Agreement emissions since 2010.

For performance over time, see table in -6% the Operational Data section on page 84. olio's CO2e climate transition emissions through portfolio changes. Changed CO2e emissions Since 2010, emissions have been reduced owing to AP4's portfolio by 50 percentage points due to portfolio ed equity portfolio's CO2e changes in 2025.

changes and by 22 percentage points as that reduce Portfolio's CO2e emissions emissions based on each company's CO2e emissions weighted according to 0% a result of reductions in emissions by companies. To achieve the climate goals, climate risk as share of global equity AP4's share of ownership in the respective Changed CO2e emissions the companies that AP4 has invested in in the portfolio index (MSCI ACWI).

owing to portfolio must also reduce CO2e emissions in their 45% Measures the respective companies' CO2e companies' reduced emissions in 2025. Portfolio's CO2e intensity emissions in relation to their revenue, AP4 supports organisations such as the as share of global equity weighted according to AP4's portfolio Institutional Investors Group on Climate index (MSCI ACWI).

Change (IIGCC) and Climate Action 100+ (CA100+). The latter aims to influence the 169 companies with the largest carbon nts to proactive sustainability investments in the unlisted emissions to take measures to reduce their carbon footprints. investments that Proactive investments portfolio amounted to SEK 3.0 billion.

contribute to and based on sustainability In 2025, AP4 has conducted company benefit from the trends that contribute In 2025, such new investments amounted dialogues on climate goals within the to and benefit from the climate transition transition to a sustainable to SEK 0.2 billion within listed equities and energy sector.

ANNUAL REPORT 34 Focus area: Corporate governance AP4's corporate governance work aims to generate the ownership policy concerning shareholder rights, the highest possible return over time with the goal influence on material matters including sustainability, that the companies' operations will develop and be and the importance of transparent and relevant conducted responsibly.

AP4's corporate governance work is characterised by responsibility, active engagement and Active corporate governance is an effective tool for a long-term approach. creating and preserving shareholder value over time. The tools and conditions for exercising corporate Within the corporate governance framework, AP4 governance vary between different forms of works with matters such as board composition, capital investment.

Ownership tools used by AP4 include structure, structuring of long-term remuneration ongoing dialogue with companies in which AP4 is an programmes, diversity of human capital, the portfolio owner, both individually and in conjunction with other companies' work with sustainability matters and shareholders, work on nomination committees and transparency in reporting.

The work takes into account voting at general meetings. the views of the company's various stakeholders in order to best promote the company's long-term Corporate governance in Swedish companies development. AP4 takes into consideration other AP4's holdings in Swedish listed equities are selected owners' interests as well as what is best for the through fundamental active management, which has company in question.

rd Trade date accounting Net income, unlisted equities and participations. parties, although other valuation methods may also be used. Transactions in securities and derivative instruments in the money market, Valuations of unlisted real estate equities are based on a valuation bond market, stock market and currency market, as well as unlisted Valuation of financial instruments according to the net asset value method to the extent that the equities equities, are recognised on the balance sheet as per the trade date, i.e.

at All of AP4's investments are measured at fair value, whereby realised and have not been subject to transactions on a secondary market. Holdings in the point in time when the material rights and risks are transferred between unrealised changes in value are recognised through profit or loss.

The lines unlisted real estate companies are valued, taking into account deferred tax parties. The receivable from or liability to the counterparty between the Net income/loss for the various asset classes thus include realised and liabilities, at the value used for property transactions, which differs from trade date and settlement date is recognised under Other assets and Other unrealised gains or losses.

Equity instruments are held for trading and are the valuation that is used in the accounting of the real estate companies. Other transactions, mainly transactions relating to therefore measured at fair value through profit or loss. Debt instruments borrowing and lending, are recognised on the balance sheet as per the are held for trading and are therefore measured at fair value through profit settlement date, which is consistent with market practice.

Loans to subsidiaries and associated companies are intended to ANNUAL REPORT 47 Bonds and other fixed income assets Securities lending AP4 has been registered for value-added tax (VAT) since 2012 and is For bonds and other fixed income assets, fair value is calculated based on Loaned securities are reported on the balance sheet at fair value, while the thereby subject to VAT on purchases made abroad.

AP4 is not entitled to the official market quotation on the balance sheet date (usually the bid consideration received for the loan is reported as interest income in the recover VAT paid. Expensed VAT is included in the expense item to which rate) according to AP4's designated index provider.

Collateral received for loaned securities can consist it belongs. in an index are valued at quoted prices observable in an active market. In cases where AP4 has the right of disposal In cases where an instrument is not traded in an active market, and over cash received as collateral, the collateral is reported on the balance Amounts in SEK millions reliable market prices are not available, the instrument is measured using sheet as an asset and corresponding liability.

In cases where AP4 does not Amounts are specified in millions of Swedish kronor (SEKm), unless generally accepted valuation models, which entails that cash flows are have disposal over the collateral, it is not reported on the balance sheet, otherwise indicated.

but is specified separately in a note under the heading "Pledged assets, Interest income includes interest calculated using the effective interest contingent liabilities and commitments". This item also includes the value Disclosures related to the consolidation of AP Funds method based on amortised cost.

Amortised cost is the discounted of loaned securities and their related collateral. Given that The National Pension Funds (AP Funds) Act enters into force on present value of future payments, where the discount rate consists of 1 January 2026, this has no direct impact on the assets, liabilities, income the effective interest rate at the date of acquisition.

This means that Items recognised directly against fund capital and expenses recognised in the financial statements of 31 December 2025. acquired surplus and deficit values are allocated over the remaining term Incoming and outgoing payments that have been made against the A description of the impact of the legislative changes on financial reporting or until the next interest rate adjustment and are included in reported pension system are reported directly in fund capital.

Changes in value attributable to changes in interest rates are reported in "Net income, fixed income assets", while changes in Commission expenses Note 2. Net interest income value attributable to exchange rate changes are reported in "Net income, Commission expenses are recognised in the income statement as a changes in exchange rates".

They consist of external costs for asset 2025 2024 management services, such as custodian fees and fixed fees to external Derivative instruments asset managers as well as fixed fees for listed funds. Performance-based Interest income For derivative instruments, fair value is based on year-end quotations.

fees, which are paid when asset managers achieve returns above the Bonds and other fixed income assets 3,682 3,629 In cases where an instrument is not traded in an active market and agreed level where profit-sharing is applied, are recognised as a deduction Other interest income 224 412 reliable market prices are not available, the instrument is measured using under net income for the relevant asset class.

Total interest income 3,906 4,041 generally accepted valuation models, in which observable market data is Asset management fees for unlisted equities and participations are used as the input data. recognised as an acquisition cost and are therefore included in the Interest expense Derivative contracts with positive fair value on the balance sheet unrealised result.

date are reported as assets, while contracts with a negative fair value Other interest expenses -39 0 are reported as liabilities. Changes in value attributable to changes in Operating expenses Total interest expense -39 0 exchange rates are reported in the income statement under "Net income, All asset management costs, excluding brokerage fees, fees paid to NET INTEREST INCOME 3,867 4,041 changes in exchange rates", while other changes in value are reported as external asset managers and custodian fees, are recognised as operating "Net income, derivative instruments".

840,119 ANNUAL REPORT 64 Board of Directors' signatures Stockholm, 19 February 2026 Our auditors' report was submitted on 19 February 2026 Johan Gyllenhoff Henrik Rättzén Helén Eliasson Helena Kaiser de Carolis Peter Nilsson Chair of the Board Vice Chair of the Board Authorised Public Accountant Authorised Public Accountant Appointed by the Swedish Appointed by the Swedish government government Monika Elling Lars Fresker Per Strömberg Roine Vestman Ingrid Werner Aleksandar Zuza Niklas Ekvall CEO ANNUAL REPORT 65 Auditor's Report For the Fourth Swedish National Pension Fund, corporate identity number 802005-1952 Report on the audit of the annual accounts Our opinion on the annual accounts does not cover this other information material misstatement, whether due to fraud or error, and to issue an and we do not express any form of assurance conclusion regarding this Auditor's Report that includes our opinion.

Reasonable assurance is a high level of assurance, but does not We have audited the annual accounts of the Fourth In connection with our audit of the annual accounts, our responsibility comprise a guarantee that an audit conducted in accordance with ISA Swedish National Pension Fund (AP4) for 2025.

The Fund's annual is to read the information identified above and consider whether the and generally accepted auditing standards in Sweden will always identify accounts are included on pages 40–64 of this document. information is materially inconsistent with the annual accounts.

In this material misstatements should they exist. Misstatements can arise from procedure we also take into account our knowledge otherwise obtained fraud or error and are considered to be material if, individually or taken In our opinion, the annual accounts have been prepared in accordance in the audit and assess whether the information otherwise appears to be together, they could reasonably be expected to influence the economic with The National Pension Funds (AP Funds) Act and present fairly, in all materially misstated.

decisions of users taken on the basis of these annual accounts. material respects, the financial position of the Fourth AP Fund as of 31 If we, based on the work performed concerning this information, As a part of the audit in accordance with ISA, we exercise professional December 2025 and of its financial performance for the year then ending conclude that there is a material misstatement of this other information, we judgement and maintain professional scepticism throughout the entire according to The National Pension Funds (AP Funds) Act.

The statutory are required to report that fact. We have nothing to report in this regard. administration report is consistent with the other parts of the annual accounts. We therefore recommend that the income statement and Responsibilities of the Board of Directors and CEO In addition, we execute the following activities: balance sheet be adopted.

It is the Board of Directors and CEO who are responsible for the • We identify and assess the risks of material misstatement in the annual preparation and fair presentation of the annual accounts in accordance accounts, whether due to fraud or error, design and execute audit Basis for opinion with The National Pension Funds (AP Funds) Act.

The Board of Directors procedures based on, amongst other things, these risks, and obtain We conducted our audit in accordance with International Standards on and CEO are also responsible for the internal control they deem necessary audit evidence which is sufficient and appropriate to provide a basis for Auditing (ISA) and generally accepted auditing standards in Sweden.

to enable the preparation of annual accounts that are free from material our opinion. The risk of not identifying a material misstatement resulting Our responsibilities according to these standards are described in more misstatement, whether due to fraud or error.

from fraud is higher than one resulting from error, as fraud can include detail in the section Auditor's responsibilities below. We are independent In preparing the annual accounts, the Board of Directors and CEO collusion, forgery, intentional omissions, misrepresentations, or the in relation to AP4 according to generally accepted auditing standards are required to assess the Fund's capacity to continue its operations.

in Sweden and have otherwise fulfilled our ethical responsibilities in They disclose, where applicable, conditions that may affect the ability to • We obtain understanding of the internal control of the fund relevant to accordance with these standards. We believe that the audit evidence we continue as a going concern and to use the going concern assumption.

the audit in order to design audit procedures that are appropriate in the have obtained is sufficient and appropriate as a basis for our opinion. However, the going concern assumption does not apply if the Board of circumstances, but not for the purpose of expressing an opinion on the Directors and the CEO intend to liquidate the Fund or cease operations or effectiveness of the internal controls.

Other information than the annual accounts have no realistic alternative to doing so. • We evaluate the appropriateness of the accounting principles applied This document includes other information than the annual accounts. The and the reasonability of the accounting estimates and related other information comprises the pages 1–39 and 67–88.

Auditor's responsibilities disclosures made by the Board of Directors and CEO. The Board of Directors and the CEO are responsible for the other Our responsibility is to obtain reasonable assurance as to whether the information. annual accounts and consolidated accounts as a whole are free from ANNUAL REPORT 66 • We reach a conclusion on the appropriateness of the Board of Directors' determine if there are any criticisms, in general, as regards the Board of Auditor's responsibilities and CEO's application of the going concern basis of accounting Directors' and CEO's management of AP4 for 2025.

Source fold: AP4 Annual Report 2025 EN continuous text layer (strategy/sustainability/operations region).

FAQ

What is the Fourth Swedish National Pension Fund (AP4)?

Fjärde AP-fonden (AP4), English Fourth Swedish National Pension Fund, is a Swedish government buffer fund in the national income-pension system under the National Pension Insurance Funds (AP Funds) Act (2000:192). Soft strings: AP4, Fjärde AP-fonden, Fourth Swedish National Pension Fund. Slug: fourth-swedish-national-pension-fund. Official site https://www.ap4.se/. Founded 1974.

Is AP4 the same as AP1 or AP7?

No. AP4 is a continuing Stockholm income-pension buffer fund. AP1 (Första AP-fonden) ceased operations at end-2025 and transferred most assets to AP3 and AP4 — profiled separately at /registry/institution/first-swedish-national-pension-fund/. AP7 (Sjunde AP-fonden) manages the premium-pension default AP7 Såfa at /registry/institution/ap7/. Do not mix AUM or leadership across AP1/AP4/AP7.

What is the latest official AP4 AUM?

Prefer official Swedish kronor — do not invent a USD headline. Fund capital SEK 885.5 billion at 30 June 2026 (Interim Report 2026; ap4.se). At 31 December 2025 fund capital was SEK 578.1 billion. After the AP1 asset transfer at the start of 2026, fund capital rose to SEK 833.8 billion (AP4 received SEK 255.8 billion from AP1).

What returns did AP4 report for 2025 and H1 2026?

FY2025 (AR 2025 / FY press 20 Feb 2026): return after costs 6.3%; net result SEK 34.4 billion; net payments to the pension system SEK 4.6 billion; total costs 0.08%. H1 2026 (Interim): return after costs 6.8%; net result SEK 56.1 billion; net payments SEK 4.5 billion. Ten-year average return after costs 8.0% per year (AR 2025 key metrics).

Who is the CEO of AP4?

Niklas Ekvall is CEO (employed 2016; Ph.D. and Docent Financial Economics). Named throughout ap4.se Executive management, AR 2025, and Interim 2026. Person SSR: niklas-ekvall. INST CEO seat: Niklas Ekvall.

Who is the CIO of AP4?

Do not invent. Official ap4.se Executive management lists CEO plus heads of Alternative Investments, Fundamental Equities, Allocation/Liquid Markets & Analysis, Sustainability/Finance & Communication, Risk & Operations, HR, and General Counsel — no CIO title. Keep INST CIO empty.

Who sits on AP4’s board?

Nine government-appointed members (ap4.se Board of Directors): Chair Johan Gyllenhoff (Chair 2024; member since 2023); Vice Chair Henrik Rättzén; Helén Eliasson; Monika Elling; Lars Fresker (since 2026); Åsa Knutsson (since 2026); Per Strömberg; Roine Vestman; Aleksandar Zuza. Two members nominated via employee organisations and two via employer organisations.

How is AP4’s portfolio composed?

H1 2026 Interim exposures: Global equities 37.7% (SEK 333.7 bn MV); Swedish equities 15.4%; Defensive equities 7.6%; Global fixed income 16.9%; Swedish fixed income 7.5%; Real assets 14.9%. YE2025 AR illustrative mix included Global equities ~35%, Global FI ~18%, Swedish equities ~15%, Swedish FI ~9%, Defensive equities ~7%, Real assets ~16%.

What happened in the AP Funds consolidation for AP4?

Swedish Parliament 2025 amendments (in force 1 January 2026) consolidated three Stockholm buffer funds into two by transferring AP1 assets/obligations to AP3 and AP4 (about SEK 511.5 billion total; AP4 received SEK 255.8 billion) and transferring Gothenburg-based AP6 into AP2. AP4’s board also performs remaining AP1 board tasks for a small segregated residual (~SEK 8.7 billion) and signed AP1’s 2025 annual report.

What is AP4’s climate and ethics approach?

Climate & Environment is a stated focus area. AR 2025 key metrics: portfolio carbon footprint 6% lower in 2025 and down 72% since 2010; SEK 4.2 billion in new thematic sustainability investments in 2025. AP4 participates in the Council on Ethics of the AP Funds and publishes exclusion/‘assets in which fund capital is not invested’ lists. Prefer AR 2025 and ap4.se Sustainability pages over secondary press.

Where are primary sources for this profile?

https://www.ap4.se/ and https://www.ap4.se/en/; Annual Report 2025 EN PDF; Interim Report 2026 PDF; listed/unlisted/fixed-income holdings PDFs at 30 Jun 2026; FY2025 results press 20 Feb 2026; consolidation press 21 Jan 2026; via.tt H1 2026 press; Board of Directors and Executive management pages. No official AP4 YouTube official video embed candidate folded.

What should researchers not invent about AP4?

Do not invent USD AUM headlines when official disclosures are in SEK. Do not invent a CIO title or fill the empty INST CIO seat. Do not conflate AP4 with AP1 (ceased buffer) or AP7 (premium pension). Do not paste AP1’s closing SEK 520.2 billion AUM onto AP4. Prefer dated AR 2025 / Interim 2026 / ap4.se primaries.

Sources & further reading

• ap4.se (SV) / ap4.se/en (EN)
• Reports hub — Annual Report 2025 EN; Interim Report 2026; holdings PDFs
• Annual Report 2025 EN PDF
• Interim Report 2026 PDF
• FY2025 results press (20 Feb 2026)
• Consolidation press (21 Jan 2026)
• Board of Directors
• Executive management
• H1 2026 via.tt press
• First Swedish National Pension Fund (AP1) · AP7 (Sjunde AP-fonden) · UAO Registry · Top 100

Completeness note

This elite profile targets ~10k+ sourced words from opened ap4.se / AR 2025 / Interim 2026 / press primaries. Non-blocking expansions: deeper line-by-line holdings tables; full TCFD numeric grids; Swedish-language AR cross-check; AP3 parallel transfer detail beyond AP4’s disclosed SEK 255.8 billion inflow; person SSR enrichment for board members lacking pages. No official AP4 YouTube embed was folded → no official video schema. Daily-refresh left disabled. Desk untouched.