Hang the expense: Norwegian fund chases Spanish alpha

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.

Sponsored Content

Leave a Comment

Sort content by

Investors must collaborate to innovate

Institutional investors are sheltered by competition, which in some instances can be beneficial, but it also means they are shielded from competitive forces that drive innovation. A new paper by Gordon Clark and Ashby Monk, looks at why the current model of either insourcing or outsourcing investment management doesn’t allow for innovation, and the models

Mercer’s plan for integrating ESG

How to implement ESG into portfolio construction and implementation is an ongoing challenge for asset owners. Mercer has come up with a number of strategies including the best way to use ESG ratings, active ownership, and tailored strategies that play to sustainability themes, including its own unlisted investment solution. Amanda White spoke to Jane Ambachtsheer,

PRI governance review to look at differential rights

The PRI has received many queries following the move by six Danish funds to abdicate as signatories over governance concerns. The association is holding a governance review that among other things will discuss the prospect of differential rights among signatories.   When six Danish funds, with a combined $300 billion, decided to leave the PRI

A trustee guide to factor investing

This research by academics at Tilburg University and the VU University Amsterdam, looks at the hurdles of implementing factor investing. It translates those into a checklist for implementing factor investing. The research, conducted for Robeco, finds that three approaches to factor investing are emerging and conducts case studies to examine how these approaches are implemented

Blackrock looks favourably on equities

Blackrock has a favourable view on equities, relative to bonds, but within fixed income it advocates an unconstrained approach. Amanda White spoke to chief investment strategist, Russ Koesterich.   Equities look cheap relative to bonds or cash, says chief investment strategist for Blackrock and iShares chief global investment strategist, Russ Koesterich, with the manager recommending

Howard Marks on alpha and making money

“It used to be easier to make money,” Oaktree Capital Management founder and chairman, Howard Marks muses as he discusses meeting the demands and goals of his clients in 2014. Marks is an avid communicator, and has been writing memos to clients for 24 years. The result is his book “The Most Important Thing”, which

Previous