Swedish pension company Alecta has announced that it is making temporary appointments to manage its assets in response to its losses on three collapsed American banks last month.

In March, Alecta incurred losses of SEK 19.6bn when three American banks (Silicon Valley Bank, Signature Bank and Silvergate) in its portfolio collapsed amid a banking crisis in the US.

Alecta stated that while the failed investments did not have a noticeable impact on its financial position, they had damaged trust in the company.

Due to the failed investments, Alecta CEO, Magnus Billing, has decided that Ann Grevelius will take over as acting head of equity from 20 April, replacing the current head of equity management.

Grevelius is a member of Alecta’s board, a position she will resign during her time as head of equity, and was previously head of SEB’s asset management.

Recruitment for a new permanent equity manager has already begun, Alecta noted.

Alecta head of asset management, Henrik Gade Jepsen, is currently on long-term sick leave due to complications of a Covid infection.

He is expected to have recovered and be back in the role after the summer.

Until he returns, Kerim Kaskal has been appointed as acting head of asset management.

Kerim Kaskal has “extensive experience” in asset management, including as head of asset management at AP3.

Billing also decided on changes within the administration, including a reduction of the risk with high ownership stakes in individual companies far from Sweden, with a focus on concentration in the American holdings.

“The losses in the three American banks account for a small part of Alecta's capital and the impact on the customers' pensions is very limited,” Billing commented.

“But it has seriously damaged the customers' trust in Alecta and our share management. It is now up to us to prove that we deserve their trust again.

“Alecta's share management needs a fresh start and new management. I have therefore, after discussions with the board, decided on these measures."

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