Proactive governance
Engagement generates added value. Well run companies deliver higher returns at a lower level of risk over time. AP3 sets out to make a difference through engagement, action and pressure for change.
Ownership the key to choice of strategy
AP3 applies different engagement strategies depending on the nature and profile of our investments. We focus our stewardship on areas where we believe we can achieve maximum impact and exert the most influence.
AP3’s overall work on ownership issues
Participates in nomination committees
Engages in dialogue with company management and boards
Votes, submits its own proposals, and makes statements at general meetings
Excludes companies
Participates in the development of self‑regulation
Supports investor initiatives
Collaborates with other investors
Participates in and safeguards the fund’s interests in legal processes
In cases where we own all or a majority of the equity – notably in the unlisted real estate companies Vasakronan, Hemsö and Trophi – we can exert direct influence over corporate strategy through representation on the board of directors.
We have a global diversified equity portfolio, the majority of which are outside Sweden, so our share of the equity capital varies from case to case. Our ownership shares are typically small in foreign investees and our scope for exercising influence over these companies’ strategies via active stewardship is necessarily limited. Our stewardship of foreign companies in often in close collaboration with other investors and channeled via the AP Funds’ Ethical Council.
The Swedish equity portfolio is also diversified and contains around 130 companies. Because Swedish investees have a greater weight in the overall portfolio, our equity holdings in these companies are larger than in foreign entities.
In Swedish listed companies, we exercise stewardship primarily through proactive engagement and participation in nomination committees. Here, the comparatively larger size of our equity holdings increases our ability to exert influence. AP3 also has a strong position in the Swedish capital market, which means our views and feedback have greater impact.
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AP3’s securities. Here, you can download AP3’s various securities holdings. For us, it is important to create long-term value when selecting investments and in the management of companies in the portfolio.
AP3 has been investing in different types of insurance-, climate- and weather-related securities since 2008. Holdings include catastrophe bonds, which are traded outside the traditional financial markets. Returns on these instruments have a low correlation with other investments, which means they help to diversify the portfolio.
Private Equity is the name for investments in the share capital of companies that are not listed on a stock market.