In a time where we cannot longer meet in person, NBIM Talks went virtual. We invited to a breakfast seminar 16 April where our CEO, Yngve Slyngstad, and Global Head of External Strategies, Erik Hilde, took us through the 20-year journey of investing with external managers. We also took you through on a virtual travel to meet two of our external managers, located in Shanghai and London.
This is a management review of our first 20-year history of investing with external managers. The external managers have played an important role in fulfilling the fund’s mandate of the highest possible return after costs with a moderate risk. The overall results have exceeded our expectations by a good margin with an excess return on 1.8 percent annually after costs, or 47 billion kroner. This review describes the strategy we have pursued when selecting mandate types and offers an insight into our thinking and the lessons we have learned.
We have published expectations of how companies in our portfolio should address global challenges in their operations since 2008. These expectations largely coincide with the UN Sustainable Development Goals.
Our voting guidelines provide a principled basis for our voting decisions. We also publish position papers which set out our views on specific topics and serve as a starting point for discussion with companies and standard setters. With some issues that we consider particularly important, we may publish our voting intentions ahead of a company’s shareholder meeting.
Our analyses are informed by our research and experience as a large, long-term investment manager. The Discussion Note series provides a basis for our investment strategy and advice to the fund’s owner. The Asset Manager Perspective series presents our views on topics relevant to the financial sector. The perspectives are not intended to be definitive but to provide useful input for all market participants.
The Government Pension Fund Global is a large, global investment fund with a long-term investment horizon. Our management of the fund shall safeguard and build financial wealth for future generations.