The Norwegian Government Pension Fund has outsourced the management of its Spanish equities to one of the country’s top-performing managers.
The $554 billion fund had managed its $7.8 billion exposure to Spanish shares in-house for many years, in a relatively concentrated portfolio.
The fund, managed by the Norwegian Government-owned Norges Bank Investment Management, has now selected a Spanish boutique, Bestinver, which is a value-oriented manager for the mandate.
Bestinver is run by star portfolio manager Francisco Garcia Parames (pictured), who handles several separate funds for the firm.
The move by such a big government pension fund is being watched closely by managers and other fiduciaries alike as it may signal a new trend back to chasing alpha rather than focusing on cost control.
Most big fiduciary investors believe they can save significant sums in management fees by running their own investments.