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December 2009

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Första AP-Fonden Stockholm, Sweden Report Facts Company name: Första AP-Fonden Fiscal year end: December 31, 2008 Report title: Annual report 2008 Chairman of the Board: Anna Hedborg Managing Director: Johan Magnusson Number of books: One Report length: 80 pages Auditors: Ernst & Young AB Production and design: Första AP-Fonden with Hallvarsson & Halvarsson E-mail: info@ap1.se	Report Rating 4/5 (Rating scale below) Context The Swedish pension system can be likened to a pyramid in which the national retirement pension forms the base, the supplementary occupational pension comprises the mid-layer and the top consists of voluntary, private pension savings. The AP-fonden (funds) are part of the national retirement pension system. (As explained in the Annual Report pp 12-13) Profile The Swedish parliament has assigned Första AP-fonden the mission of managing part of the national income pension system’s assets. Första AP-fonden shall achieve the highest possible returns on the fund’s asets, with well-balanced financial risks, and thereby contribute to high and predictable long-term retirement pensions for current and future pensioners. (Annual Report source) (Italics are own company’s words) Key Figures Closing net assets: SEK 171.6 billion Net investment income: (SEK 48 billion) Total return (before expenses): -21.7% Active return (before expenses): -0.7% Currency exposure: 22.2% (Source: 2008 figures sourced from the annual report)

Triple A > Outstandingly thorough Highlights, setting forth a five-year overview, active return contribution, asset exposure to different regions, a description of asset classes and return. > Year’s dramatic chain of events and its repercussions honestly put in perspective. Better than in dozens of private or public sector financial institutions’ reports. > Clear description of the mission, the context, the asset management model and their implications on the scope of activities. > Goals and strategies smartly mapped out. > Five-year overview rich in ratios. > Very good and clearly put review of operations (see Selected Pages).

Double A > Simple, clear and effective layout and circle-by-circle report thread. > Well-structured and user-friendly online version, downloadable in short sections. > Strong use of charts, graphs, diagrams, maps. > Governance section shows the participation in companies’ shareholder meetings.

Simple A > Risk factors and management addressed, yet insufficiently developed. > Accounting and valuation principles could be more elaborate. > Pictures do their placard-carrying job.

B Sides > Report ending and back covers not used. > Couldn’t statements span over three years? > Notes to statements are much too short and lack comments.

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Selected Pages (pp 44-45 of Första AP-Fonden Annual Report 2008)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.