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.

Greg Bright is executive chairman of Conexus Financial. He has 30 years experience as a financial journalist and publisher and has previously started two companies – Trade News Corporation in the 1980s (later acquired by the Reed Group) and InvestorInfo (a listed company acquired by Morningstar). Prior to becoming a publisher, in 1983, he was assistant editor of the Australian Financial Review and before that an economics writer for the Sydney Morning Herald.
Leave a comment