AP6’s direct investments fall into two categories. One category is joint investments, where AP6 has an active ownership role and a large holding (less than 50 percent, however). The second category is co-investments, where AP6 invests in a fund and then invests directly in a company together with the fund. For this type of investment, AP6’s holding is typically around 2-15 percent.
For joint investments, AP6 exercises a direct ownership role with the company it has invested in. Together with the co-investor, AP6 plays an active role in assessing the investment and exercising corporate governance during the duration of the holding. Efforts with sustainability issues are an integral part of corporate governance. For joint investments, AP6 typically has a holding that entitles it to representation on the company’s board of directors, together with the majority investor and external representatives.
For co-investments, the ownership role and corporate governance is similar to a fund commitment. In other words, there is indirect involvement via dialog and stating requirements on the managers who are responsible for the fund and its holdings.
ESG stands for Environmental, Social and Governance factors.