28 November, 2018

Diversification and spread of risks

Over the last 20 years, the market for unlisted investments has undergone a transformation, becoming much more international. During this period, AP6 has shifted its investment from the Swedish market, to the international market. The private equity market is also becoming increasingly specialized, which is why AP6 has adopted a broad approach. This means that AP6 has the expertise for participating in the wide variety of investment solutions that exist. As a result, it has created a well-diversified portfolio with adequate spread of the risks. AP6 has also seen that this broad approach leads to more opportunities for investing in attractive assets.

The illustration below shows the composition of AP6’s portfolio as of 2017-12-31.

 

During the period 2013-2017, AP6’s portfolio has become more diversified across geographic areas.

 

 

 

During that same period, it has also become more diversified across sectors. Accordingly, it has increased the spread of risk in the portfolio as well.