The challenging market environment is putting pressure on pension funds. In response, many are lowering return targets, rather than taking on more risk or requesting larger contributions.
Norges Bank Investment Management would like to see an increase in the number of company listings and suggests more flexibility from exchanges and index providers could facilitate this.
Institutional investors now dominate the free float holdings of listed companies and exchanges need to adapt to this enduring change in market structure and investor needs, according to Norges Bank Investment Management, manager of the $818 billion Norwegian sovereign wealth fund. Norges Bank, which itself owns around 1 per cent of the world’s listed stock,... Read more »
Choosing the appropriate benchmark for active managers is a common debate among institutional investors. Norges Bank Investment Management has produced a “discussion note’ on the benchmark design for an active investment process, in which it introduces a flexible modelling framework that aims to incentivise each portfolio manager to utilise their stock-picking skill. The benchmark... Read more »
How could you integrate ESG into a portfolio of 7,000 stocks? Behind the Strategy Council’s report to the Norwegian Ministry of Finance on responsible investment for the Norwegian Government Pension Fund Global. The Strategy Council, led by Professor Elroy Dimson from the London Business School and Cambridge Business School, has advised the Norwegian Ministry... Read more »
The world is running short of water, but what does that mean for investors? Asset owners in the Netherlands and Norway assess and manage the water-related risks in their portfolios, including the measurement of portfolio companies’ water dependence and water security. The drought hitting South Africa’s North West Province sounds another warning shot around the... Read more »
The power of benchmarking funds on sustainability is demonstrated by the fact 171 property companies and funds surveyed in the 2012 GRESB benchmarking report reduced GHG emissions by 6 per cent – this is a reduction of 432,000 metric tons of CO2, the equivalent of removing 85,000 cars from the road. The Global Real Estate... Read more »
Water and how a company manages its exposure to this increasingly scarce resource is a key focus for Norway’s sovereign wealth fund in assessing the environmental and social performance of the more than 8000 companies in its portfolio. Anne Kvam, the head of Norges Bank Investment Management’s (NBIM) corporate governance team, says the sheer size... Read more »
The Norwegian Government’s 3055 billion kroner ($544.9 billion) pension fund lost 8.8 per cent during the third quarter of this year, on the back of falling share markets. But its fund manager says most of the fund’s new capital inflows are still being pumped into global share markets.
Some of the brightest investment minds gathered recently in Oslo for the first Financial Research Conference, conducted by the asset management arm of Norway’s central bank.
The Norwegian Government Pension Fund Global and AXA Real Estate will form a real estate joint venture, with the sovereign wealth fund committing €702.5 million ($1.01 billion) for a 50 per cent investment in seven Parisian properties.
The UK Crown Estate, which as the name suggests manages the assets and estate of the Crown, has entered into the second joint venture with an institutional investor in as many months. Norges Bank, which manages the 2,908 billion kroner ($498 billion) Norwegian Government Pension Fund Global, has purchased a 150-year lease on a 25... Read more »