NORWAY - The Norwegian Government Pension Fund - Global says it has transferred capital into three new fixed income and four new equity mandates in the third quarter.
The disclosure came as the former Petroleum Fund said it is "now the largest pension fund in Europe" at NOK1.7trn (€205bn).
Ellington Management Group and Barclays Global Investors were awarded capital for US specialist fixed income while Smith Breeden Associates was awarded a mandate for investments in mutual funds.
For equities, the fund said: "Capital was transferred to four new mandates assigned to external equity managers during the quarter: Fidelity Pensions Management, Atlantis Fund Management Ltd. and Scheer, Rowlett & Associates Investment Management Ltd. were awarded regional mandates, while Wellington Management Company LLP was awarded a sector mandate."
The fund grew by NOK207 in the quarter. "The increase was due to the transfer of new capital (NOK79bn), the positive return on investments and the weaker krone, which increased the market value by NOK61bn and NOK66bn respectively," Norges Bank Investment Management said.
The Global fund's investment return in the quarter was 3.9%, 0.16 points below benchmark. The return over the nine-month period was 4.6%, 0.05 points under benchmark.
NBIM's foreign exchange reserves investment portfolio awarded a new US specialist brief to Bridgewater Associates.
There was an aggregate "negative excess return" of NOK2.1bn on all the three portfolios - Government Pension Fund - Global, investment portfolio and Government Petroleum Insurance Fund - run by NBIM.