LOM has decided to sell up its equity position on Goldman Sachs following the recent civil action taken against the firm by the Securities and Exchange Commission (SEC).

The SEC announced earlier this month that it was suing the US investment bank for alleged fraud linked to derivatives.

LOM's Investment Committee announced its decision to sell its Goldman Sachs investments from its equity portfolios this week.

"Although we continue to consider Goldman Sachs a high quality company with excellent growth prospects and an attractive valuation, the recent civil action against the firm - as well as the possibility of regulatory overreach within the financial industry - has resulted in an increased risk profile for the stock," LOM said in a statement in its newsletter.

"Although the final outcome of the civil case is difficult to predict, we believe the company has a good legal defence and the ultimate damages, if any, will not likely be material relative to Goldman's financial position and cash flow generation."