Swedish buffer fund AP4 nets 26% return from real estate

Swedish buffer fund AP4 made a 10% return on its investments in 2016 with real estate contributing a gain of more than 25%.

Real estate was the stand-out strongest performing asset class for AP4 in 2016, producing 25.9% in returns before costs, followed by Swedish equities with a 12.4% return.

Real estate accounts for 7% of the overall portfolio, and Swedish equities make up 19%.

Meanwhile, global shares – which make up 39% of AP4’s total portfolio – returned 7.3%, and fixed-income investments generated 2.0%.

Niklas Ekvall, chief executive, said AP4’s historical results were largely due to the ability its mandate gave it to exploit degrees of freedom – particularly relating to its long investment horizon.

“AP4 intends to further intensify its ambition to establish an investment philosophy and build an investment portfolio that takes full advantage of the opportunities that our mandate and mission offers,” he said.

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