Alecta Profits in Q1 Despite US$ 2 Billion SVB Investment
Posted on 04/20/2023
Alecta has announced a 3.1% return on investments for Q1 2023. The 5 year return is 5.3%. In a one year span, the fund has a loss of 0.2%. Katarina Thorslund is Acting CEO after Magnus Billing was let go days ago. Billing’s departure is due to the fund’s US$ 2 billion investment in SVB, which famously collapsed. Thorslund began her career in 1986 as an actuary.
Alecta, the largest pension in Sweden, has apologized to pensioners for the SVB investment. Alecta’s statement on investment philosophy to pensioners is as follows: “Our share portfolio includes large, well-known companies as well as smaller companies that our equity analysts believe in strongly for the future.”
News out of the U.S. Federal Reserve’s Beige Book shows credit tightened throughout the economy after the SVB collapse. The Fed summarized the conditions: “Several Districts noted that banks tightened lending standards amid increased uncertainty and concerns about liquidity.”
