Borlänge Kommun, the SKr340m (€41.6m) pension fund, has terminated its contract with Sweden's FöreningsSparbanken, despite outperformance, because it failed to adhere to its mandate.

According to Christina Norén, head of economics department at the Borlänge local authority, the manager took too many risks throughout 1999, despite several requests to adjust its positions to agreed parameters.