NORWAY - Norges Bank Investment Management (NBIM) is seeking managers to run a series of mandates aimed at the environmental and sustainable resource sectors.
In an open invitation to tender, the External Equity Management Group of NBIM issued a request for proposals (RFP) in eight investment sectors and across specific regions in the Americas, EMEA and Asia.
The sectors targeted by NBIM include:
This follows confirmation by Roger Schjerva, state secretary at the Norwegian ministry of finance, in October last year stating the fund would invest over €400m in carbon capture facilities in 2010, as part of its €20bn programme of environmental investment. (See earlier IPE articles: Norway-Global to plough €400m into carbon capture and Norway global to exclude tobacco and target environment)
NBIM noted that the initial focus in the open tender is for single country mandates and sector mandates, although it will consider all large cap, mid-cap and small cap proposals. The organisation also noted that all of the mandates will be invested in long-only listed equity products only.
It said the size of the portfolios, and the guidelines, would be tailored to each investment manager, with the typical initial funding ranging between $50-250m (€35-175m).
NBIM warned it would not consider investments in eight specific assets and vehicles including non-listed equity, private equity, non-listed real estate, option strategies, SRI funds and balanced strategies. However, officials would consider start-up products and mandates without a track record.
The search for external managers to support these strategies comes despite disappointing third quarter results for the fund in this area. As figures published in November revealed, external management accounted for around 13% of total assets, but these had lost NOK45bn (€5.5bn) in the third quarter to total just NOK332bn. Of this, externally-managed equities accounted for a loss of NOK25bn. (See earlier IPE article: Norway Global sees record return despite external losses)
There is no deadline for submissions because the NBIM has issued an open invitation to tender, and said while it will review every submitted application only those of priority will be contacted. Further information and a copy of the RFP can be downloaded from the NBIM website.
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