AP1 Fires CEO, Names Interim Head | Chief Investment Officer

Johan Magnusson

Sweden’s AP1 has fired Chief Executive Officer Johan Magnusson, naming a temporary chief in the interim, following an alleged trading rules breach.

The 352 billion krona ($35.8 billion) pension’s board fund announced Magnusson’s canning Monday after he got caught violating “internal regulations on the holding and trading of financial instruments.” General Counsel Teresa Isele was quickly named as the acting CEO. The search for a new head began immediately.

“Since it has now emerged that Mr. Magnusson has broken our internal regulations, he unfortunately no longer has the board’s confidence,” said Urban Hansson Brusewitz, Chairman of the Board of AP1. “Therefore the Board has agreed unanimously that it is not possible for Mr. Magnusson to continue as CEO of AP1.”

According to Swedish newspaper Expressen, Magnusson’s termination is related to an incident that happened over the past year that was brought to Brusewitz’s attention during the summer. The board has yet to decide if it will launch an external review of the violation, the chairman told the paper.

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Magnusson had been in charge of AP1 since 2008, and the fund has returned about 7.7% annually under his watch, according to Bloomberg. He also worked at SEB Wealth Management, Lloyd George Management in Hong Kong, and ABB.

Isele has been AP1’s general counsel since 2016. She previously worked at EQT holdings and Swedish law firm Vinge.

AP1 could not be reached for comment.

Tags: AP1, Johan Magnusson, Pension, Sweden, Teresa Isele

The Ontario Teacher’s Pension Plan ($153.8 billion) has partnered with Alphabet (Google’s parent company) to launch a new tech-based infrastructure company named Sidewalk Infrastructure Partners. Seeking to hold, acquire, and invest in technology-enabled infrastructure projects, it was recently spun out of Sidewalk Labs, Alphabet’s urban innovation business.

Possible joint infrastructure projects could include tech-enabled systems for stormwater management, neighborhood heating and cooling, and advanced traffic controls. Sidewalk Labs is looking to do similar work along the Quayside section of Toronto’s waterfront.

The New York and San Francisco Bay Area-based firm will specifically focus on advanced mobility, energy, water and waste, digital infrastructure, and social infrastructure sectors. Investments will go toward facilitating technology to “enable sustainable, distributed and intelligent urban infrastructure, creating jobs, improving mobility, and providing more environmentally friendly infrastructure solutions,” Ontario Teachers’ said in a release.

“Sidewalk Infrastructure Partners provides an exciting opportunity for Ontario Teachers’ to join Alphabet and Sidewalk Labs in helping to transform infrastructure in North America through the use of technology,” Olivia Steedman, senior managing director of the plan’s Teachers’ Innovation Platform told CIO in an email.“We will bring our infrastructure and investment expertise to the table, while leveraging our partners’ world-leading capabilities in technology, to enable sustainable, intelligent and efficient physical infrastructure.” The innovation platform focuses on late-stage venture and growth equity investments in companies that use technology to disrupt incumbents and create new sectors, according to the pension plan’s website.

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Ontario Teachers’ invests 9% of its total portfolio in infrastructure and continues to increase access to the space. The fund recently announced a co-investment with AustralianSuper to invest up to $1 billion each with the National Investment and Infrastructure Fund of India.

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Tags: Alphabet, Google, Infrastructure, Ontario Teachers' Pension Plan, Pension, Sidewalk Infrastructure Partners