Sovereign Wealth Fund Institute

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According to the press release, “Norges Bank will not purchase foreign exchange for the Government Pension Fund Global in January.

The Fund’s foreign exchange requirements are partly met by the state’s direct financial interest in petroleum activities (SDFI) and partly by Norges Bank’s purchases in the market.

The Ministry of Finance determines the size of the monthly allocations to the Fund. Norges Bank’s purchases of foreign exchange are equal to the difference between the allocations and the SDFI’s estimated foreign exchange revenues. Adjustments are made for any revisions of estimates for the previous month. As a result, the daily purchases may vary from one month to the next. The daily foreign exchange purchases are determined for a period of one month at a time and are published on the last business day of the preceding month.”

Read more: Norges Bank

Estimates by the Sovereign Wealth Fund Institute, SWFs have finally reached the US$ 4 trillion in assets.

Just recently, Norway GPFG published that they topped over 3 trillion kroner for first time. The Norwegian sovereign wealth fund is now $512 billion in assets.  This is a huge milestone in the importance and growth of sovereign wealth funds.  Oil based sovereign wealth funds still hold the lead over non-commodity based SWFs.

“The fund has grown faster and bigger than most people expected since getting its first inflow of capital in May 1996,” says Yngve Slyngstad, chief executive officer of Norges Bank Investment Management (NBIM), which manages the fund.

Read more about: Norway GPFG

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According to the press release, “Norwegian finance minister Sigbjørn Johnsen and Norges Bank’s governor Svein Gjedrem were in attendance on Wednesday when Norges Bank Investment Management (NBIM), manager of the Government Pension Fund Global, opened a new office in Singapore. The office will help NBIM’s existing office in Shanghai to cover the increasingly important Asia region.

Various representatives of the Singapore authorities and local business community, including trade and industry minister Lim Hng Kiang, were also at the opening ceremony.

“An office in Singapore will strengthen our operations in Asia,” commented Gjedrem. “Having a presence in a region with strong economic growth is important for achieving good management results.”

As one of Asia’s foremost financial centres, Singapore offers good investment opportunities and has a well-developed financial infrastructure. Asset management is a major industry in the country, making it possible for NBIM to recruit and retain skilled workers.

“The new office will be a good supplement to the Shanghai office opened in 2007,” commented NBIM’s CEO Yngve Slyngstad.

Sigmund Kyrdalen has been appointed general manager in Singapore. He is a senior portfolio manager at NBIM and managed NBIM’s London office for two years.  The Government Pension Fund Global had a market value of almost 2 800 billion kroner at the end of June. Around 10 percent of the fund is invested in Asia, and around 15 percent of its equity investments are in Asian companies.

Besides Singapore, NBIM has offices in Oslo, London, New York and Shanghai.”

Press Release: NBIM

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Asian Investor states, “NBIM received approval as a qualified foreign institutional investor (QFII) from the China Securities Regulatory Commission in October 2007 and now runs a fund worth roughly $200 million in China. The Shanghai office is also responsible for maintaining the fund’s Asia-Pacific portfolio, which as at end 2008, represented 16.2% of NBIM’s equity investments and 5.8% of its fixed-income portfolio.

Now NBIM wants to add an investment manager to head up its global technology, media and telecom, or TMT, portfolio to be based in Shanghai. There are also openings for a new CIO, COO, chief risk officer, as well as chief treasurer in its London and Oslo headquarters.”

read more: Asian Investor

The Independent reports that, “Norway’s sovereign wealth fund is on the verge of an $18 billion (£12.5bn) shopping spree for landmark British and American properties. Norges Bank, Norway’s central bank, which manages investments made from Norway’s vast energy surplus, is understood to be ready to make its first investments by the end of the summer. Paul Golding, the former Merrill Lynch banker who heads the fund’s UK arm, had been expected to start investing money for the fund last year. However Norges needed approval from the country’s government, which was not forthcoming during the financial crisis last year. Mr Golding’s three-man investment team is understood to have stepped up talks with property advisers in recent months ahead of getting the needed permission. Norges is likely to invest as a minority stakeholder in landmark buildings in both the UK and US while prices are low. If this proves successful, it will continue to invest in other markets.”

read more: The Independent