Rare praise for active managers as two decades of returns have "exceeded expectations by a good margin", says NBIM

External asset managers have played an important role in fulfilling the oil fund’s mandate to get the highest possible returns over its 20-year history, Norges Bank Investment Management writes in a new report. The fund believes that performance-based fee schedules are a way to attract the best external managers.

Nicolai Tangen is displayed on a screen while being presented as the new head of the Government Pension Fund Global, also called the Oil Fund, as Head of Norges Bank Investment Management Yngve Slyngstad | Photo: Ntb Scanpix/Reuters/Ritzau Scanpix/via REUTERS / X02351

When Norges Bank Investment Management (NBIM) was set up in January 1998, the sovereign wealth fund was given a mandate to start investing in equities. Today, Norges Bank Investment Management has published a review of its 20-year history of investing with external managers.

"The overall results have exceeded our expectations by a good margin. In the first 20 years, the excess return has been 1.8 percent annually after costs or EUR 4 billion (NOK 47 billion)," says CEO of Norges Bank Investment Management Yngve Slyngstad, who will soon be replaced by hedge fund entreprenuer Nicolai Tangen.

Read the whole article

Get 14 days free access.
No credit card required.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

ETF specialist hires Nordic director

The US-based provider of exchange-traded products is strengthening its Nordic sales team with Amundi's former Head of ETF and Indexing in the Nordics.

Further reading

Related articles

Latest news

See all jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch