Norway’s sovereign wealth fund plans to use more external managers
Norges Bank Investment Management (NBIM), the sovereign fund that manages Norway’s petroleum revenues, plans to expand its use of external asset managers next year. Jon Nicolaisen, vice-governor of the Bank of Norway, in charge supervising NBIM, said the fund could delegate up to 5% of all its assets under management. The 5% cap has thus far been meant for the equity portfolio.
As of the end of 2019, 3.9% of NBIM’s assets were outsourced to external managers, particularly in emerging equities and small caps. Nicolaisen described the increased use of asset managers as a way to spread the fund’s risks over a larger number of markets, and “to avoid companies or sectors with weak governance or problematic business models.”