Norwegian sovereign wealth funds speaks of future plans

Norwegian 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

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST