The first 20 years with external managers

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. 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 publication reviews our first 20-year history of investing with external managers. It describes the strategy we have pursued when selecting mandate types and offers an insight into our thinking and the lessons we have learned.

Published 16 Apr. 2020

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Presented at a virtual NBIM Talk

The management review was presented at a virtual NBIM Talk on 16 April. Our CEO, Yngve Slyngstad, and Global Head of External Strategies, Erik Hilde, talked us through the 20-year journey of investing with external managers. We took a virtual travel to meet two of our external managers, located in Shanghai and London.

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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. This review examines our 20-year history of investing with external managers. It describes the strategy we have pursued when selecting mandate types and offers an insight into our thinking and the lessons we have learned. 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.