The Fund Selection Blog

Norway’s Pension Fund Global Looks to Southern European Bonds

The Wall Street Journal reported that the Chief Executive Officer (CEO), Yngve Slyngstad, of Norway's $513 billion Pension Fund Global, believes that measures taken in southern European countries during 2010, had positive outcomes that will transcend into 2011.

 

"We think that the measures that were taken during 2010 by European politicians were positive, so we are optimistic that the measures which will be taken in 2011 will also be positive for the bond investors," Yngve Slyngstad, told the Wall Street Journal.

 

Slyngstad further emphasized that Norway's pension Fund Global sold 50% of the government bond invested in Southern Europe in 2009, and then repurchased the bonds in 2010.  The fund has 60% of its fixed income and 50% of its equity, invested throughout the European Continent, and at the end of 2010, the fund reported a return of 7.2%.

 

Ai-ciodigital  reported that in a recent research written by State Street Global Advisors, it showed that during the recent global financial crisis, world’s leading sovereign wealth funds reexamined their investment strategies, and made many changes. This practice could be observed in Norway’s Pension Fund Global. In order to manage the financial crisis in 2008, the fund increased its exposure to equities, and decreased its exposure to bonds.

 

John Nugée, senior managing director of SSgA’s Official Institutions Group, said in a statement to Ai-Ciodigital. "Many have re-examined the performance of their funds, lessons they should draw from the market turmoil and the extra defenses they need in their approach. In many cases the review confirmed that their guiding principles were correct, but a number have decided to make some important changes.”

Updates From ODIN’S Nordic Funds

ODIN Funds recently published commentary on the performance of their funds, below are highlights from the commentary about the Nordic Funds.

ODIN Nordic Fund

At the end of January 2011, the Nordic Fund ended with a drop of 1.0% and its benchmark ended with a rise of .2%.

ODIN Norway

At the end of 2010, the Norwegian ODIN fund had a period of high rises, and increased values. This period was halted in January 2011 when the fund dropped 2.4% and the fund’s benchmark ended with a drop of 3.2 %.

ODIN Finland

Like the Norwegian ODIN fund, the Finnish ODIN fund also had high rises at the end of 2010.  However, the Finnish ODIN fund still managed to rise by .7% and its benchmark ended with a rise of 1.6% for January.

ODIN Sweden

In January the Swedish fund rose by 1.3 % and the benchmark ended with a rise of .1%.

 

 

 

 

Scandinavia Fund Exceed the 100-Million-Euro Mark

Carlson equity Fund part of DnB NOR Asset Management, reached the 100 million euro mark. The fund was managed by Karl G. Hogtunes managed along with Kjell Morten Hjørnevik. In the five-year view, the fund returned 42.7%, compared to its benchmark performance of 29,7%, according to the SEC Net Vinx Capped Index, and the volume is now approximately at €105.9 million.

"The Scandinavian countries have much to offer. The increased investor interest is reflected clearly in the cash inflows again," said fund manager Karl G. Hogtunes, head of the Nordic Equities team and portfolio manager of the Nordic Fund List, in the company press release.

Investors are increasingly investing in in Sweden, Norway, Denmark and Finland, and as reported the analysts expect a profit for the Scandinavian companies, from 15 to 20%.

Skagen Fund’s CIO Was Acquitted

Kristian Falnes Chief Investment Officer (CIO) and fund manager at Skagen Funds, was acquitted after the court ruled that he acted in line with the confidentiality provisions of the Norwegian Securities. Falnes was suspected of breaching confidentiality, when he provided the Norwegian company Q-free with information about shares in the company dn.no.

According to the Privata Affärer report, Falnes was contacted by a stockbroker at handelsbanken, who mention that an Austrian firm wanted to buy 24.3% of the shares of Q-free. Falnes, refused to sell the stock, and contacted the management at Q-free, explaining how he suspected insider trading and possible manipulation of the company’s share price.

The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, (ØKOKRIM) had given Falnes a fine of NOK 350,000 (€45,000) for breaching confidentiality. However, the district court found that Falnes acted correctly by informing the company, and he did not breach confidentiality. However, the Norwegian Prosecution Authority is appealing the court’s decision.

Northern Trust Hires New Investment Sales Director in Stockholm

Kristina Ilar has been hired as the new investment Sales Director of Northern Trust Global Investments Ltd. (NTGI), the international asset management arm of Northern Trust, which will be offering asset management expertise in Sweden and the UK.

Previously, Ilar was Director of Client Relationships, and Business Development at UBS Asset Management. Now, she will be based in Northen Trust’s Stockholm office, and will be offering asset management products and solutions to corporate and public pension funds, sovereign wealth funds, insurance companies, financial institutions, charities, central banks and other eligible professional investors across the Nordic region.

John Krieg, Managing Director of NTGI in Europe, Middle East and Africa, stated in the company press release, “We are delighted to welcome Kristina to the team.”  He added, “We take a consultative approach with all our clients at NTGI, customizing our products and solutions to meet their specific requirements. Kristina’s extensive experience in the financial services industry and local knowledge adds exactly the competence our Nordic clients need.”

Norway’s (GPFG) Rejected Malaysian Company From Their Investment Portfolio

Norway’s Government Pension Fund Global (GPFG) rejected the Malaysian company Lingui Developments Berhad and partnering company Samling Global Ltd, from their investment portfolio. At the end of 2009, GPFG held shares worth NOK 2.7 million in Lingui Developments Berhad, but the divestment of the Malaysian company is now complete.

The Council on Ethics, in the Ministry of Finance made the decision to exclude Lingui Developments Berhad due to their involvements in forestry operations in the Malaysian rainforest, and their possible contributions to severe environmental damages in the region, violating the Ethical guidelines.

The decision was made based on satellite images, field visits, and the evaluation of documents. Due to the Lingui’s violations, Samling was also excluded.

Handelsbanken is The First Nordic Bank to Issue Bonds in China

Today, Handelsbanken issued a 170 million yuan bond in Hong Kong, China. The Nordic bank is the first in the region to issue bonds in China.

Bengt Edholm, Head of Treasury at Handelsbanken, reflected on the positive situation of having a Chinese bond, he stated in the company press release: “The positive reception again confirms the Bank’s strong position in the funding market. This issue reflects our long-term aim to support our customers’ business in the markets in China and Hong Kong,”

Handlesbanken established their first Chinese office in 1982, and today is one of the most widely seen banks throughout Asia. With the new bond, Handelsbanken aims to further diversify their long-term funding, as well as open a large funding market throughout Asia.

Second Swedish National Pension Fund (AP2) Invests in Forestry, and Agricultural Land

Swedish AP2 Fund made three new investments in forestry and agriculture in 2010. The three mutual funds consist of an agricultural fund in the U.S., a forest fund in the U.S. and a forest fund in Australia / New Zealand. AP2 fund claims these funds were specifically chosen due to the fact that ‘demand in urbanization is growing, and subsequently so is the demand for forest and agricultural products.’ Moreover, both forest and agricultural lands have the ability to provide stable returns.

The investment seems to have been a positive one for AP2, as Eva Halvarsson, CEO of the Second Swedish National Pension Fund/AP2, commented on AP2 year’s return: “For the second year in succession, the Second AP Fund has been able to generate a solid result, achieving a growth in the worth of its market assets in excess of the five percent target. Equally pleasing is the fact that the active management of our assets has in two years contributed a total of SEK 2.6 billion.”

AMF Funds Appoints Anders Oscarsson as President

Anders Oscarsson is appointed as president of AMF funds. Fredrik Nordström served as president for the past 10 years, and is now the director of business development at AMF Funds. In his new role Fredrik Nordström will be primarily responsible for intelligence, new business opportunities and security economy

Eddie Dahlberg, chairman of the AMF Funds, stated in the company press release, "Fredrik Nordström served ten successful years in the CEO role at AMF funds. The capital has grown during this time, from under one billion to roughly 65 Billion. The environment and competition is changing, and with it new challenges are arising. Having Anders Oscarsson as the new President of AMF funds will bring new perspectives and experiences.’’

Jan Sööder Leaves Aberdeen and Joins NIRAS

 

NIRAS, a Swedish independent consulting company hires Jan Sööder as their new senior advisor. Previously, Sööder was the CEO at Aberdeen Asset Management in Sweden, he has also been a credit manager at Alecta Asset, and has run his own consulting business.

"It is fantastic that Jan has chosen to join us. His experience and expertise will complement our already strong team in property development and investment and makes us one of the industry's hottest players, "said, CEO Jan NIRAS Leif, in the company press release.