UPDATE – Norway’s Sovereign Wealth Fund Seeks to Double Sector Specialists

Norway’s Government Pension Fund Global (GPFG) is growing professional staff in its internal equities department, leading a major trend occurring in large sovereign wealth funds to minimize external manager costs. Sovereign wealth funds like Singapore’s GIC and the Abu Dhabi Investment Authority follow a similar strategy of spending internal resources on in-house management. Equity portfolio managers at Norges Bank Investment Management (NBIM) have specialized industry mandates. These sectors range from listed infrastructure to U.S. banks. As being the world’s largest sovereign wealth fund, the sovereign fund wants to cultivate in-house expertise by recruiting more sector specialists, possibly doubling from its current size.

Investment Returns -Asset Class – Norges Bank Investment Management

Year Equity Portfolio Returns (%) Fixed Income Portfolio Returns (%)
1999 34.81 -0.99
2000 -5.82 8.41
2001 -14.6 5.04
2002 -24.39 9.9
2003 22.84 5.26
2004 13 6.1
2005 22.49 3.82
2006 17.04 1.93
2007 6.82 2.96
2008 -40.71 -0.54
2009 34.27 12.49
2010 13.34 4.11
2011 -8.84 7.03
2012 18.06 6.68
2013 26.28 0.1

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