Swedish fund fires CEO after heavy losses

The head of Sweden's largest pension scheme has left the fund after the fund sustained heavy losses from its stakes in three failed US banks.

Alecta said it had lost nearly US2 billion from its stakes in First Republic Bank, Silicon Valley Bank and Signature Bank.

The sharp rise in interest rates hit all three lenders.

Management and the board said they have worked tirelessly to isolate the losses and work through the processes within asset management to understand how the situation arose.

Alecta, which has US$110 billion of assets under management, said Magnus Billing had departed as chief executive as the losses had "seriously damaged confidence" in Alecta's asset management."

Billing's departure was despite findings that current investment decisions were within the framework and mandate established by the board,

"The board has concluded that Alecta needs new leadership to implement the necessary changes within the asset management and re-establish trust," Alecta said in a release.

Deputy chief executive Katarina Thorslund will serve as interim chief executive until Billing's replacement is found.

Meantime, Ingrid Bonde will support the organisation as working chairman of the board.

"We would like to thank CEO Magnus Billing for the solid work he has put in during his time at Alecta for the good of the company and the customers. At the same time, Alecta now needs to look ahead and forcefully implement the necessary changes", said Bonde.