Norway’s Stock Investing Behemoth Signals Shift to Active Management

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

Norges Bank Investment Management, the arm of the Norwegian central bank that operates the 11.162 trillion Norwegian kroner fund, equivalent to $1.3 trillion, has revised its strategy several months into the tenure of Chief Executive Nicolai Tangen. Mr. Tangen joined in September after previously running a $21 billion London-based hedge fund.

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

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

Under the updated strategy, the fund’s portfolio managers will focus less on the macroeconomic environment or factors like growth, and more on assessing individual companies. Mr. Tangen signaled such moves in a December interview with The Wall Street Journal. The fund for years has been embroiled in an active versus passive tussle over how best to invest, with everyone, from outside fund managers, former Norges Bank Investment Management executives and academics, weighing in.