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Report of the month

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

Report Rating


(Rating scale below)


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)


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.

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item.


Selected Pages

(pp 44-45 of Första AP-Fonden Annual Report 2008)
pp 44-45 of Första AP-Fonden Annual Report 2008 pp 44-45 of Första AP-Fonden Annual Report 2008
Rating Scale
Very good
The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.