AP4, Stockholm, posted a -11.9% investment return last year, affected by rapidly rising rates and sharply falling values of most asset classes, it said Friday.
The pension fund's assets fell 12.7% to 460.5 Swedish kronor ($44.1 billion) as of Dec. 31.
Net return for the year amounted to -62.5 billion kronor compared to a 85.5 billion kronor gain in 2021.
AP4 also reported positive returns of 6.9% and 9.2% on five- and 10-year annualized basis, respectively, noted CEO Niklas Ekvall in a news release Friday.
At the end of 2021, the five-year annualized return was 11.6%, while the 10-year return was 11.8%.
The fund's portfolio's carbon emissions decreased by 3% in 2022. Since 2010, AP4 achieved a 61% reduction, it said.
"AP4 continuously analyses sustainability trends and actively searches for investments that it deems will contribute to and benefit from the transition to a sustainable society. During 2022, AP4 made new thematic sustainability investments amounting to 7.4 billion," Mr. Ekvall added in the release.
The fund's asset allocation as of Dec. 31 consisted of global equities at 31%, global fixed income at 21%, real assets at 18%, Swedish equities at 16%, Swedish fixed income at 9% and defensive equities at 5%.