Första AP-fonden files lawsuit against Bank of New York Mellon
Första AP-fonden has today filed a lawsuit against Bank of New York Mellon (BNYM) with the Commercial Court in London.
The lawsuit has been filed in response to losses suffered by Första AP-fonden in the region of US$35.5m (equal to around SEK 230 million) during 2008 as a result of investment decisions taken by BNYM on Forsta AP-fonden’s behalf. On 19 November 2009, BNYM made a deduction of approximately US$35.5m from the Fund's managed account in respect of these losses. This deduction, which the Fund considers to have been made wrongfully, is shown in the Fund's annual reports for 2008 and 2009, and in the Fund's earnings for 2008.
Första AP-fonden considers that the investment decisions which were taken by BNYM in its capacity as the Fund’s securities lending agent, and which related to the investment of collateral in notes issued by Sigma Finance Inc, were negligent and in breach of the Fund’s investment guidelines (Sigma went into receivership in October 2008).
“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,” says Johan Magnusson, Managing Director of Första AP-fonden.
Johan Magnusson Managing Director
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Första AP-fonden, the First National Pension Fund, is one of five buffer funds whose role is to ensure future retirement pensions in the reformed pension system. Första AP-fonden’s mission is to achieve the highest possible returns on the Fund’s assets, with well-balanced financial risks, and thereby contribute to high and predictable long-term retirement pensions for current and future pensioners. At 30 June 2010, Första AP-fonden had net assets under management of SEK 202.6 billion.