Alecta, Stockholm, made changes to its investment guidelines and appointed two new executives as a result of losses caused by its exposure to Silicon Valley Bank and two other collapsed U.S. banks.
Alecta, which has about 1.12 trillion Swedish kronor ($107.8 billion) in assets, incurred losses of 19.6 billion kronor from its investments in SVB, Signature Bank and First Republic Bank. As a result it said it is changing its investment guidelines effective immediately, to reduce the risk associated with holding high stakes in individual companies located outside of Sweden. Alecta has about 35% of its assets in equities according to the most recent figures.
Ann Grevelius was named acting head of equity effective April 20. Ms. Grevelius, an Alecta board member, will replace Alecta's head of equity management Liselott Ledin. Details of Ms. Ledin's next role could not be immediately learned. Ms. Grevelius will resign from her board position.
Kerim Kaskal was named acting head of asset management, standing in for Henrik Gade Jepsen who is on long-term sick leave. Mr. Jepsen is expected to return after the summer, Alecta said in a news release. Mr. Kaskal was head of asset management at the 486.4 billion kronor AP3, Stockholm, between 2018 and 2019. Most recently he served as senior adviser at alternative lender Niam Credit.
"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. But it has seriously damaged the customers' trust in Alecta and our share management," Magnus Billing, CEO of Alecta, said in the release.
"It is now up to us to prove that we deserve their trust again," Mr. Billing added in the release," Mr. Billing added in the release.
After the SVB collapse, Mr. Billing was asked by the board to investigate Alecta's investment strategy, risk allocation and mandate for asset management.
A spokesman could not be reached to provide further details.