NORWAY - Norges Bank Investment Management funded a total of 11 new investment mandates in the second quarter, amid a -1.5% return at the Government Pension Fund.
These included seven fixed income and equity mandates at the Government Pension Fund - Global, the former Petroleum Fund, and four at Norges Bank's foreign exchange investment portfolio.
The Government Pension Fund - Global's mandates were three fixed income and four equity, according to NBIM's quarterly report.
Fixed income was awarded to Putnam Advisory Company LLC (two mandates: specialist US and global), while Insight Investment Management Ltd. was awarded a mandate for specialist fixed income management in Europe.
For equities, capital was transferred to AllianceBernstein, GLG Partners and T. Rowe Price Associates (regional) while Janus Capital Management was awarded a sector mandate. The size of the mandates was not disclosed.
The move came as the Government Pension Fund - Global posted a return of -1.55% in the period, 0.10 points below benchmark. The market value of the fund was NOK1.5trn (€186bn) at the end of June, a NOK21bn rise.
Its equity portfolio returned -3.31% in the quarter while fixed income returned -0.39%, hit by market turbulence. There was a transfer of new capital of NOK69.6bn.
"A stronger krone in relation to the investment currencies and a negative return in international currency reduced the value of the fund by NOK26.1bn and NOK 22.4bn respectively," NBIM said, although it pointed out that a change in the exchange rate has no effect on the fund's international purchasing power.
There were also four mandates funded for the NOK205.7bn foreign exchange reserves portfolio in the quarter. Smith Breeden Associates gained two US specialist briefs while Lehman Brothers Asset Management and Hyperion Capital Management were each awarded one mandate for specialist management in the US.
The return on Norges Bank's foreign exchange reserves' investment portfolio was -1.5% in international currency, while the return on the Government Petroleum Insurance Fund was -0.1%.