AP4, Stockholm, sold equities in 20 coal companies in efforts to reduce climate risk in the portfolio, a spokesman said.
The divestment of investments managed in-house helped AP4 to reduce the carbon footprint to about 57% of its benchmark, MSCI All Country World index, AP4 said in a news release. The size of the divested assets could not be learned by press time.
Separately, Jenny Askfelt Ruud was named head of alternative investments at AP4, the spokesman added.
Ms. Askfelt Ruud replaces Tobias Fransson in the role starting in September. Mr. Fransson was named head of strategy and sustainability about a year ago and focuses on strategy, sustainability and communication. He has continued to serve in the alternatives role as well.
Ms. Askfelt Ruud "has a long background from unlisted direct investments, long-term ownership and sustainability from ... Ratos, McKinsey and Morgan Stanley (MS). These are experiences that we seek going forward now that we get an increased and broader investment mandate," said Niklas Ekvall, CEO of the 356.6 billion Swedish kronor ($40.2 billion) pension fund, in a news release.
Ms. Askfelt Ruud was previously running her own investment advisory firm, the spokesman said.
The appointment follows AP4's preparations for the incoming investment rules for Swedish AP funds, which will apply starting Jan. 1, 2019. AP funds will be allowed to decrease their minimum fixed-income allocations to 20% from 30% and increase unlisted illiquid assets to 40% from 5%. In addition, the requirement to hold at least 10% of assets with external money managers will be removed.