Andra AP-fonden conducts efficient asset management. In an international comparison, management expenses are lower than for similar funds.

AP2 works extensively on cost efficiency and takes an overall view of all processes from a cost perspective. During the budget process, each person with budget responsibility is involved in both their own budget and the Fund’s overall budget. The Fund also maintains a continuous focus on costs that impact net income for each asset class, such as transaction costs.

Lower costs by global comparison

An established methodology for measuring and comparing the cost-effectiveness of pension funds from an international perspective has been developed by CEM (Cost Effectiveness Measurement Inc.). AP2 has participated in CEM’s annual comparative study since 2004. According to the latest analysis, AP2 continues to conduct successful and cost-effective asset management. The Fund’s cost level remains lower than that of the benchmark group by a significant margin. This can mainly be attributed to cost-effective internal management and less use of external management.

Different costs

Comission expenses

Commission expenses are recognised in the income statement as a deduction in operating income. These comprise external expenses for asset management services such as custodial expenses and fixed fees to external asset managers, as well as fixed fees for listed funds.

Operating expenses

Operating expenses are reported separately in the income statement and comprise personnel costs and other administrative expenses.

Costs affecting net income

Some costs, such as performance-based fees, management fees for unlisted equities and participations and brokerage commission, affect the net income of the respective asset class, and are therefore not reported as a cost item in the income statement.

Read more in AP2’s Annual Report 2023, pages 66-68.