AP4, Stockholm, recorded a net return of -0.2% for the year ended Dec. 31, with assets declining to 349.3 billion Swedish kronor ($37.6 billion).
In an update Thursday, the fund said the return equated to a loss of 500 million kronor. For the 12 months ended Dec. 31, 2017, the fund returned 9.1%; comparative figures for the six months ended Dec. 31 were not available.
Assets fell 4.7% vs. June 30 and by 2% vs. Dec. 31, 2017.
AP4 achieved a five-year annualized return of 8.1%, and 9.9% for the 10 years.
The fund's 39% global equities allocation returned -8.5%, while Swedish equities, which made up 15% of the allocation, returned -1.1%.
On the fixed-income side, the 22% global interest rates allocation lost 0.9% for the twelve-month period, but the 12% allocation to Swedish interest rates gained 1.5%. Real assets achieved a 19.1%, with a 12% allocation. Further details were not available.
The year's negative result was unfortunate, AP4 CEO Niklas Ekvall said in a news release accompanying the update. But, he said, 2018 marked the first year since 2011 that the fund had shown a negative result. "The annualized return for the last 10-year period is clearly positive, amounting on average to 9.9%," Mr. Ekvall said.