Four new members are expected to join Alecta’s board of directors later this month when the Swedish pension fund’s supervisory board convenes on April 25.

Some of the newcomers have extensive asset management experience and as they are replacing board members who are primarily trade-union based, they will add asset management skills to the new board.

According to Kenneth Bengtsson, the chairman of Alecta’s supervisory board and convenor of its nomination committee, the four new members – three of them independent – will reinforce the board’s “competence and experience” in various ways.

“They can contribute to continuing the strengthening and development of Alecta,” he says in a press release.

One of the four members nominated for the board is Hans Fahlin, who was chief investment officer at the AP2 buffer fund for almost 12 years – until 2022. Another nominee, Bo Kratz, has worked with asset management for many years, particularly in Asia, and for a number of companies, including Conning, Northern Trust, and ABN AMRO.

Viveka Strangert, a third nominee, has extensive experience from the finance industry, including several years as chief compliance officer at Swedbank.

A turbulent year

The past year has been turbulent for Sweden’s largest commercial pension fund. Last spring, Alecta – with an AUM of SEK 1,245trn (EUR 108bn ) – lost almost SEK 20bn (EUR 1.7bn) on its investments in three collapsed US niche banks.

Later last year, Alecta’s investments in real estate company Heimstaden Bostad were increasingly questioned. The pension fund has written down 25% of its original investment – or SEK 12.7bn (EUR 1.1bn).

This investment turbulence has also led to significant personnel changes. The now former CEO, Magnus Billing, was fired in April 2023, and later that year, the chair of Alecta’s board, Ingrid Bonde, resigned. This year, Alecta has named a new chair twice, only to see the appointments fail due to perceived conflicts of interest.

Since Bonde’s resignation last October, vice chair Jan-Olof Jacke has been acting chairman of Alecta’s board. While the search for a new chair continues, Jacke will continue in this role, possibly until the next ordinary supervisory board meeting in 2025.

Critics say that Alecta needs a more professional board than one that is dominated by members of employer organizations and trade unions. Whether the new board members are a step in this direction – and what that may lead to – remains to be seen. 

The four new members are expected to be elected later this month along with six sitting board members, including Jacke, who are up for re-election.