Monday, November 08, 2010 1:29:54 PM
Sweden's AP1 Pension Sues BNY Mellon for $35.5 Million Loss
The pension is reportedly suing the firm for losses from an investment by the asset manager that went sour during the global financial crisis.
(November 8, 2010) -- One of Sweden's largest pension funds has sued Bank of New York Mellon for more than $35.5 million over investment losses.
“We have been trying to come to an agreement with BNYM for some time, unfortunately without success. We therefore see no option other than to file a lawsuit in order to have this matter resolved by the court. We believe that BNYM have a case to answer and we have confidence in the merits of our position,” said Johan Magnusson, Managing Director of Första AP-fonden, in a release.
Pension fund AP1 on Monday filed the lawsuit against BNY Mellon, which was acting as the fund's securities lending agent, with the Commercial Court in London. The scheme alleged that losses suffered by Första AP-fonden during 2008 were a direct result of investment decisions taken by BNYM on Forsta AP-fonden’s behalf.
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AP1, one of Sweden's seven national pension funds with net assets of roughly $27 billion, called the investment decision negligent, saying that it violated the fund's investment guidelines.
"We have not yet had an opportunity to review this complaint, and so cannot comment on the matter at this time," BNY Mellon's Joe Allinger told aiCIO.
To contact the
aiCIO editor of this story: Paula Vasan at
pvasan@assetinternational.com; 646-308-2742