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It’s been almost a year since the Silicon Valley bank’s collapse sparked a short-term financial crisis across the banking industry, but one of the bigger casualties, the $120 billion Swedish pension fund, is still feeling the effects. are dealing with. Its executives.
Alekta, which provides pensions for a quarter of Sweden’s population, announced that its new board chair, Karina Åkerström, has resigned after just a week in the role.
Kenneth Bengtsson, chairman of Alekta’s nominating committee, said in a statement: “We are disappointed that Karina Åkerström has changed her assessment of her ability to serve as chair of the Alekta board and has chosen to resign.” .
In an unusually cryptic message, Bengtsson said no new information had come to light in the week since Åkerström’s appointment and that no conflicts of interest had arisen that “couldn’t be addressed in the normal way.” .
“Of course, during that process, we asked Karina Åkerström extensive questions about this matter,” Bengtsson said.
Alekta’s former interim chairman, Jan-Olof Jacquet, will return to his role as interim chairman until the fund finds someone to remain in the role on a long-term basis.
A representative for Alecta declined further comment on the press release.
The sudden resignation of Åkerström, the former CEO of Swedish bank Svenska Handelsbanken, comes as the Swedish bank faces dire losses on some of its riskier financial bets and falls on hard times. It will do little to quell the broader crisis of confidence in the funds being built.
Alekta is still shaken by the SVB crisis
Alekta has said on numerous occasions that 2023 was one of the most turbulent years for the pension fund in its 107-year history.
But the events of the past year suggest that we may still be underestimating the level of turmoil within funds seeking to reduce the risk profile of their damaged portfolios.
Åkerström’s appointment was short-lived, making him the foundation’s first permanent chair since October, when Ingrid Bonde resigned in the wake of the crisis caused by the collapse of SVB last March.
In his resignation statement, Bonde said there had been “too much focus on my humanity,” adding that he needed to “dedicate my time and energy to my family and other commitments.”
The fund posted losses of SEK 16 billion ($1.9 billion) last year thanks to its stakes in troubled U.S. banks SVB, First Republic and Signature, but fears pervading the financial sector All of which became virtually worthless.
Alecta previously fired CEO Magnus Billing in April after the fund disclosed losses from holdings in US regional banks, which led to Alecta It was claimed that the trust in the asset management business had been severely damaged.
executive flip flop
Mr. Åkerstrom’s U-turn is just the latest flip-flop at the executive level to disrupt Alecta.
The board had originally selected former Danish central bank governor Lars Rode to replace Bonde as chairman in January, but withdrew that appointment within a week.
Mr. Alecta said Mr. Rohde had accepted a directorship at another company with too many similarities to Mr. Alecta, but was not aware of this during the selection process.
At the time of his surprise appointment, Mr. Åkerström was reluctant to be appointed to lead the troubled fund.
Mr Åkerström said that although his appointment was unexpected, “sometimes the unexpected happens and I’m used to working flexibly.”
Alecta continues to fight bad bets on investments. Last week, Alecta announced a $1.2 billion write-down due to losses in real estate developer Heimstaden Bostad, its largest single investment.
The pension fund said the value of assets held by indebted landlords fell by 25% in 2023 as a sharp rise in interest rates hit property valuations and significantly increased borrowing costs.
This article originally appeared on Fortune.com
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