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AP3 bases its investment strategy on allocating assets across six risk categories: Equities, Fixed Income, Credits, Inflation, Currencies and  Absolute Return Strategies.

This approach provides an effective structure for analysing and projecting future returns and risk for different assets with similar risk profiles. These projections, combined with macroeconomic analysis, valuations and assessments of investors’ risk appetite, form the basis for allocation decisions. Exposure is defined as underlying market value that is exposed to changes in value arising due to market movements. Use of derivatives to manage risk and bring greater efficiency to asset management operations may result in exposure being greater or less than total fund capital.

Return per risk categoryReturnContribution to total return
31 December 2018%%
Equities-9.8-4.3
Fixed income-1.1-0.2
Credits0.70.0
Inflation14.82.9
Currencies-2.9
Absolute return strategies 1)--0.7
Total AP30.70.7
1) Absolute return strategies consist of risk mandates which no capital allocations are made and return can therefore not be fairly measured.

 

Exposure per risk categoryExposureExposure
31 December 2018SEKm%
Equities157,19246.1
Fixed income74,64621.9
Credits17,3205.1
Inflation90,17926.5
Currencies 1)60,45117.7
Absolute return strategies12,3564.1
Total AP3353,171103,7
1) Currency exposure is shown as the portion of fund capital that is unhedged and cannot be added to other exposure.