Norway’s sovereign wealth fund, the world’s biggest, wants to allocate a larger chunk of its $1.3 trillion portfolio to external asset managers, describing their performance so far as “fantastic.” The Oslo-based investor already raised its allocation target for external asset managers at the end of last year, bringing it to 5% from just under 4%. It will now “increase that somewhat,” up to 6%, according to Trond Grande, the fund’s deputy chief executive officer.

The model applies mostly to the fund’s equity portfolio in emerging markets, and means that as much as $80 billion will be handled by outside asset managers.

“As long as the strategy is to use this to manage equities in emerging markets, there are also limitations on the size of these markets,” Grande said in an interview on Wednesday. “Emerging markets account for about 10% of the equity portfolio, so there are some natural limitations as long as the strategy is what it is.”


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Source: BNN Bloomberg

By Lars Erik Taraldsen