NORWAY - The NOK 1016bn (e123bn) Government Petroleum Fund has hired seven new fixed income and eleven new equity managers in 2004, while three equity managers have been sacked.
At the end of 2004, 16 external fixed income managers with 21 mandates managed a total of NOK 58bn as compared to nine managers with twelve mandates managing NOK 43bn in 2003.
New managers appointed in 2004 were Daiwa SB Investments (UK), Nomura Asset Management (UK), Insight Investment Management (Global), PanAngora Asset Management, Smith Breeden Associates, Delaware Investment Advisers and European Credit Management.
The fund has 19 external equity managers with 44 mandates managing capital equivalent to NOK 179bn at the end of 2004, compared with 15 external managers with 34 mandates managing capital worth NOK148bn in 2003.
In 2004, the fund hired Legg Mason Capital Management, NewSmith Asset Management, Primecap Management Company, T Rowe Price Associates and Wellington Management Company for new regional mandates.
Merrill Lynch Investment Managers was sacked as one of the fund’s regional managers.
The fund also appointed Columbus Circle Investors, Fidelity Pensions Management, Gartmore Investment Management, OrbiMed Capital, Sector Asset Management and T Rowe Price to new sector mandates.
Credit Suisse First Boston and Franklin Advisors had their sector mandates terminated during the year.
Knut Kjaer (pictured), executive director, said that all the new mandates had been funded.
Over the year, the fund returned 8.9% in 2004, beating its benchmark by 0.53 percentage points.
Returns on the equity and fixed income portfolios were 13% and 6% respectively.
The value of the fund increased by NOK 171bn during the year, NOK 138bn of which reflected transfers of new capital from the Ministry of Finance.
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