Recently, the Norwegian government global pension fund, the world’s largest sovereign fund, recently updated the list of external managers on its website.
The so-called external manager refers to accepting the entrustment to help the Norwegian government’s global pension fund be responsible for relevant market investment.
As of 2021, the external clients of the Norwegian government’s global pension fund include about 10 Chinese traders, some of which are newly added in 2021.
The Norwegian government’s global pension fund is Norway’s sovereign fund, with the latest scale of US $1268.3 billion, which is the world’s largest sovereign fundP align = “center” well known private Ivy asset management becomes the latest trader
Source: nbim website. Nbim published the list of external clients, the comprehensive list of journalists and industry information, and learned that these institutions are responsible for China’s investment. However, it does not rule out the existence of other global institutions responsible for Chinese investment, and there may be omissions in the list.
According to the Norwegian government’s global pension fund website, by the end of 2021, the name of ivyrock asset management had appeared in the latest list of external managers of the Norwegian government’s global pension fund, which was the first time it had appeared in the list of external managers. It is understood that behind it is China’s well-known private Ivy asset management, with offices in Shanghai and Hong Kong, China.
Ivy asset management was established in 2011 and initially had three partners. Among them, Huang Yong and Jiang Yu are responsible for investment and research. Both of you are from Everbright. In a recent media interview, Ivy asset management said that at the beginning of its establishment, the company made it clear that it must do a good job in the rate of return, rather than rush to expand the scale. They believe that as long as the yield is done well, there will naturally be customers who recognize them.
The information obtained by the reporter shows that the A-share market is weak. The net value of ivy China Focus Fund issued by ivy asset management lost about 9 points in January this year, and the loss range is in the middle of the industry.
Another emerging institution in 2021, first Beijing investment, was established in 2009. The partners of first Beijing and first Manhattan jointly provided seed funds and established the first fund. It is reported that the first Beijing obtained the investment of the Norwegian government’s global pension fund in July 2021.
For the rest, external managers have cooperated with the Norwegian government’s global pension fund since at least 2020.
Other well-known Chinese traders include Gao Yi and Danshui spring. In addition, APS, an asset management institution located in Singapore, is also one of its Chinese traders. Although APS is located in Singapore, it is mainly engaged in Chinese investment. About live, think about China; Runhui is a brother company of PE giant CDH. At present, it has also set up a private securities investment fund company in China; Biyun asset management is a very low-key institution that enjoys a high reputation in the Greater China stock investment circle; Red gate is also an institution focusing on Greater China stock investment. Its founder is Shao Qingxiao, a well-known investor in Shanghai. Xingjian is an asset management institution in Hong Kong. It and its partners have launched a mutual recognition fund in China.
According to the habit of the Norwegian government’s global pension fund, its cooperation will not be easily terminated once it is opened. But it is not that it never ends cooperation. China’s well-known private Jinglin asset management once appeared in its list of external managers, but did not appear again in 2018 and beyond.
two types of Chinese traders are popular
Norges bank investment management, the Norwegian government’s global pension fund operator, is currently looking for two types of Chinese traders, one in charge of China’s onshore stock assets and the other in charge of China’s offshore stocks. The Norwegian central bank investment management company previously told the media that it has no special preference for the investment style of candidate managers, but managers need to pay attention to the environmental, social and governance issues of investment companies.
In 2021, the investment management company of the Norwegian central bank said in an interview with the media that there is no deadline for the bidding of Chinese traders, and qualified managers can submit applications at any time. According to the website information, the first order amount of investment management of the Norwegian central bank in cooperation with external managers is generally between us $50 million and US $300 million.
The reporter learned that in terms of equity institutions, the investment management of the Norwegian central bank tends to private equity companies because the interests of the management and the company are bound. In addition, it also pays great attention to operational risk when selecting managers.
the largest Chinese heavy stock Tencent
The cooperation between the Norwegian government’s global pension fund and external managers is a classic case. The investment management of the Norwegian central bank has issued a special report on the benefits of external managers to the Norwegian government’s global pension fund. The conclusion is that the management fees paid by Norwegian investment management to external managers in the past 20 years are far lower than the money made by external managers for them.
On March 3, the Norwegian government’s Global Pension Fund announced the fund’s position at the end of 2021 on its website. By the end of 2021, the Norwegian government’s global pension fund had distributed 676 Chinese stocks (according to the definition of the Norwegian government’s Global Pension Fund: Chinese stocks refer to companies registered or whose main revenue comes from China), with a total market value of NOK 335 billion, equivalent to about RMB 238.8 billion, and Chinese stock investment accounts for 2.7% of the fund.
Due to the fluctuation of the stock market, the total market value of Chinese stocks in positions has shrunk compared with the end of 2020. However, over a longer period of time, the Norwegian government’s global pension fund has significantly increased its investment in the Chinese market over the past 10 years.
According to the information from the official website of the Norwegian government’s global pension fund, the layout in the Chinese market was about NOK 2.1 billion in 2005. From SEK 2.1 billion to NOK 335 billion at the end of 2021, the fund’s investment in Chinese stocks has increased 159 times in the past 16 years.
By the end of 2021, the top 10 heavyweight stocks invested by Norwegian government Global Pension Fund in China include Tencent holdings, Alibaba, meituan, China Construction Bank Corporation(601939) , Kweichow Moutai Co.Ltd(600519) , Industrial And Commercial Bank Of China Limited(601398) , China Merchants Bank Co.Ltd(600036) , Ping An Insurance (Group) Company Of China Ltd(601318) , JD and Yaoming biotechnology. According to the industry distribution, four stocks are from the financial industry, three stocks are from the consumer industry (optional consumption or necessary consumption), two stocks are from the technology industry and one stock is from the medical and health industry.
Among them, Tencent holdings ranked 14th among the more than 9000 global stocks held by the fund. By the end of 2021, the fund held more than US $5 billion, equivalent to RMB 31.6 billion.
