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See the Main Reason Why Norway’s Sovereign Wealth Fund Likes Equities

The US$ 838 billion sovereign fund had a 26.28% return in its equity portfolio versus a 0.1% return in the fixed income portfolio. In total, the sovereign fund posted a 15.9% return in 2013.

In recent news, the mega sovereign fund became a net seller of stocks to comply with its limit on public equity holdings. 150 billion kroner worth of stock was sold (~US$ 25 billion) in the fourth quarter of 2013.

Norway’s sovereign wealth fund is managed by Norges Bank Investment Management.

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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nbim_assetclassreturnsFEB2014

>> See how the sovereign fund’s fixed income asset class performed?[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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bcIMC Buys into Bottling Business with PAI in €1.623 Billion Takeover of Refresco

Dutch soft-drink bottler Refresco Group N.V. has agreed to a buyout offer for all 81.2 million of its shares from French private equity firm PAI Partners SAS (PAI) and Canadian pension manager British Columbia Investment Management Corporation (bcIMC) in exchange for €20 in cash per ordinary share for a total consideration of €1.623 billion. Refresco’s major shareholders, which includes 3i Group, and shareholding members of its boards, who represent 26.5% of outstanding shares, have said they stand behind the deal.

Refresco’s board rejected an initial offer from PAI in April 2017 of €1.4 billion, which they felt did not adequately capture the value added by their plans to bolster its presence in North America through the acquisition of Canadian bottler Cott TB, a deal that went through in July for US$ 1.25 billion.

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Digital Insurance Distributor BGL Opts for CPPIB Money Over IPO

Canada Pension Plan Investment Board (CPPIB) is investing £675 million (US$ 895.715 million) for a 30% stake in Peterborough-based BGL Group, a digital distributor of insurance and household financial services to 8.5 million customers. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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