Sweden Pension Fund Sees Chair Step Down After Major Losses
The chair of Alecta’s board, Ingrid Bonde, has resigned. Her resignation follows controversies around Alecta’s substantial losses from investments in U.S. banks and a Swedish property group. Alecta is Sweden’s leading pension fund provider.
The firm has been under investigation by the Swedish Financial Supervisory Authority (FSA) over its risk-taking approach, particularly after a loss of 19.6 billion Swedish crowns ($1.78 billion) due to collapsed U.S. bank investments.
Recently, the FSA began another probe, examining Alecta’s 50 billion crowns investment in Swedish property firm, Heimstaden Bostad. This is especially concerning as Alecta’s significant investment in Heimstaden Bostad represents a sizable portion of its funds, and Sweden’s property market already faces stress, with banks extending over 4 trillion Swedish crowns ($360 billion) in homeowner loans.
READ: Swedish Pension Fund Suffers Over $728M Loss After Selling Position in First Republic Bank
Earlier in April, the board at Alecta made the decision to terminate its CEO after the firm reported a staggering loss of 19.6 billion Swedish crowns ($1.78 billion). This loss stemmed from investments in U.S. banks, including First Republic Bank, Silicon Valley Bank, and Signature Bank, which faced a financial meltdown. Following this debacle, the company’s asset management chief also resigned.
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