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47 billion kroner of excess return

External managers have over its 20-year history played an important role in fulfilling the fund’s mandate of the highest possible return after costs with a moderate risk.

16 April 2020

Today, Norges Bank Investment Management has published a review of our 20-year history of investing with external managers. 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.

"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 47 billion kroner, says CEO of Norges Bank Investment Management Yngve Slyngstad.

Over the last 20 years, we have invested with 308 external active equity managers. A core tenet for us has been to keep our approach dynamic. It is essential to adapt processes and strategies to a changing world and to learn from experience. The types of mandates we have awarded have evolved over time – from regional and sector-specific mandates early on, to investments in emerging markets, small companies in developed markets and environment-related companies.

“We have a thorough approach to selecting external managers and continuously reselect the managers. All parts of the selected investment firms are monitored and evaluated through regular meetings in their own offices, to ensure that the portfolio manager, investment team, management, compliance and operation personnel meet our requirements,” says Global Head of External Strategies Erik Hilde.

The publication is only available in English.

Press contacts:

Marthe Skaar
Head of Communications and External Relations (acting)
Tel.: + 47 926 17 663

Read the management review