Investments
Internal mandates
Many of the fund’s managers have expertise within specific market segments and use this to find and exploit investment opportunities that can increase the fund’s returns.
Specialised managers may have extensive knowledge of a limited number of companies, a specific industry, a local equity market or a particular segment of the fixed-income market. NBIM awards specialised investment mandates to both internal and external managers.
Specialised internal equity managers often get mandates for a specific industrial sector. They typically base investment decisions on fundamental analysis of individual companies in a given sector. They get much of their information from direct dialogue with management of various companies to gain insight into their strategies, value chains and long-term trends. The information is used for internal analysis to pick stocks that will outperform the sector average.
Specialised internal fixed-income managers often get mandates for a specific market segment and currency. A fixed-income manager may specialise in government bond markets in Europe, the Pacific or the U.S., corporate bonds in Europe or the U.S., or covered and securitised bonds in Europe or the U.S.
