The ExxonMobil pension fund has filed a lawsuit against its custodian Northern Trust for breaching its fiduciary responsibilities.
The corporate fund is claiming that the funds garnered from the lending out of shares has been invested in risky assets by Northern Trust.
These assets are alleged to have included highly-leveraged assets, mortgage-backed securities and collateralised debt obligations.
It is alleged that these investments effectively generated losses for the ExxonMobil pension fund.
US law firm Berger & Montague is pursuing class action against the firm. The firm is inviting other pension plans to join its lawsuit.
Northern Trust is the custodian for Australia's Future Fund. The fund did not provide comment.
