Sweden's largest pension fund, Alecta, was an investor in both Silicon Valley Bank and Signature Bank before they failed.
Business magazine, Fortune, reports that the fund's CEO Magnus Billing describes what has happened as "a big failure" for Alecta as an investor.
Alecta began buying shares of Signature Bank and Silicon Valley Bank's parent company, SVB Financial, as well as the regional bank First Republic Bank in 2017.
The fund increased their allocation over the following two years, and by the end of 2022, Alecta was the fourth-largest shareholder of SVB Financial, the sixth-largest of Signature Bank, and the fifth-largest shareholder of First Republic Bank.
Alecta's total stake in the three failed or struggling US regional banks amounted to 21 billion Swedish Krona or US$2.1 billion.
Mr. Billing sought to reassure his Swedish clients on Tuesday after US banks' dark start to the week, noting that Alecta's investments in the three regional banks amount to just one per cent of its total capital.
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