Behemoth’s Norwegian equity investment signals shift to active management

The world’s largest sovereign wealth fund is considering a more active approach to investing, according to the updated strategy it unveiled on Wednesday.

Norges Bank Investment Management, the branch of the Norwegian central bank that manages the NOK 11.162 trillion fund, or the equivalent of $ 1.3 trillion, revised its strategy several months after CEO Nicolai took office. Tangen. Mr Tangen joined in September after previously managing a London-based $ 21 billion hedge fund.

“What we want to do is make sure we’re using risk in a slightly more productive way,” Tangen said in an interview on Wednesday.

As the world’s largest single shareholder, the fund owns an average of 1.4% of listed companies worldwide, making it a large investor in companies like Apple Inc. and Alibaba Group Holding Ltd. The fund generated a return of 10.9% last year.

As part of the updated strategy, the fund’s portfolio managers will focus less on the macroeconomic environment or on factors such as growth, and more on the valuation of individual companies. Mr Tangen pointed out such moves in a December interview with the Wall Street Journal. The fund has been involved for years in an active versus passive fight over how best to invest, with everyone from outside fund managers, former Norges Bank Investment Management executives and academics, weighing in on the weight.

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