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Norwegian sovereign wealth funds speaks of future plans

carrel-billiard_100x130Norwegian sovereign wealth fund speaks of future plans

Government Pension Fund – Global, the Norwegian sovereign wealth fund, is due to appoint more managers within country-specific mandates and is considering private equity investments. It has invested 5% of the fund in real estate.

Funds Europe spoke exclusively to Yngve Slyngstad, CEO of Norges Bank Investment Management – the asset management arm of the Norwegian central bank that manages 88% of the NOK2.6 trillion (€323.7bn) fund.

Slyngstad said: “In 2009 we have been busy awarding specific country mandates, particularly in the emerging markets.

“We have numerous new mandates in diverse places in the world. Some of the new markets we have moved into include Brazil, China, Turkey, Poland, Malaysia and Thailand.”

These mandates were awarded to external managers, and it looks like other fund managers may be in with a chance of getting a piece of the pie, as Slyngstad said: “This is a strategy we’re going to continue going forward with.”

Currently, 12% of the fund is managed by external managers, which is by no means small. “Twelve per cent of the fund is more than $50bn (€36.6bn) so it’s a significant amount already,” he says. “It’s on the path to increase… we have a programme to continue to fund more managers and also the existing managers with more assets.”

In another move to alternative asset classes, the fund made a 5% allocation to real estate. Slyngstad said: “We’re investing 5% of the fund into real estate. We’re going to start in Europe and look at the US at a later stage.”

The fund is also considering investment in private equity. Slyngstad said: “If we were to invest in private equity, this allocation would be externally managed.”

For a full write up of the interview see this month’s Funds Europe Nordics eport.

©2010 funds europe