Critics lambast Alecta for secrecy and "incompetence" in major real estate investment

The Swedish pension firm’s investment strategy in Heimstaden Bostad has been built on a risky high leverage ratio. The more money the real estate company borrowed, the higher the returns for Alecta.

Activist investor Christer Gardell accuses Alecta of "incompetence". | Photo: Cevian Capital

by KIM WIESENER

Pension giant Alecta faces accusations of incompetence, naivety, and secrecy due to its sizeable and apparently high-risk investment in the troubled Swedish-Norwegian real estate company, Heimstaden Bostad.

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Critics lambast Alecta for secrecy and "incompetence" in major real estate investment

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Despite huge investment, Alecta has little control over troubled real estate giant

Swedish FSA to investigate Alecta’s Heimstaden investment

Alecta investigates own investment in troubled real estate giant

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Further reading

World's best EMD team still waiting for clients to return to Danske AM

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Storeband increases stake in Danish infrastructure manager to become majority owner

Nordic institutional investors still see potential in beleaguered Swedish battery producer

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Norwegians are investing record amounts in funds

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Expansion of Nordic team has paid off: Inflows to all core products for US manager