Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • Consultants
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2023
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
Breadcrumb
  1. Home
  2. Sovereign Wealth Funds
October 02, 2020 01:52 PM

Norges revises rules to suit CEO’s vast wealth

Sophie Baker
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Norges Bank Investment Management CEO Nicolai Tangen
    Bloomberg

    Norges Bank Investment Management CEO Nicolai Tangen

    Norges Bank has amended rules for how the new CEO at the world's largest sovereign wealth fund may invest his personal wealth, as the country's banks cannot handle the sum.

    To eliminate potential conflicts of interest when Nicolai Tangen took on the role of CEO at Norges Bank Investment Management — which runs the assets of the 10.6 trillion Norwegian kroner ($1.16 trillion) Government Pension Fund Global, it was agreed that his investments in funds would be wound up and the proceeds invested in bank accounts. His personal wealth is managed by Gabler Investments.

    However, the central bank said in a letter to the Ministry of Finance, dated Oct. 1, that the value of redeemed fund investments was close to 5 billion kroner. Mr. Tangen's cash deposits in foreign banks are an additional about 2.9 billion a year, amounting to total bank deposits of almost 8 billion kroner.

    Norges Bank said there is a limited number of banks with a sufficient rating and solvency where personal bank deposits of this size can be made, while anti-money laundering and other rules related to large deposits are time-consuming. "Overall, it has therefore proved difficult to diversify investments sufficiently to avoid significant exposure to individual banks," the letter said.

    The central bank has instead outlined plans to allow Mr. Tangen to invest in Norwegian and foreign government securities with maturities of up to 12 months and to invest in other securities issued by public authorities, including international institutions, with maturities of up to 12 months. These investments are in addition to bank deposits and may be invested directly or via funds. Investments may not be made in equities or corporate bonds.

    "The purpose of investments in such securities is to spread the funds and prevent unwanted exposure to individual banks, not to achieve higher returns. At the same time, these are deep and liquid markets where individual investors cannot influence market prices," the letter said. Limiting the maturity of the assets prevents an overlap with GPFG's benchmark index, since the wealth fund's government bond investments have a "significantly longer maturity."

    Gabler will manage the funds from the sale of Mr. Tangen's stake in AKO Capital, the London-based hedge fund he founded. Assets will be run through a discretionary management arrangement, with Mr. Tangen having no influence on individual investments. Gabler cannot invest assets with money managers that have been hired by NBIM and cannot be invested in fixed-income securities that are excluded from GPFG's investment universe.

    Further, Mr. Tangen's assets cannot be deposited with NBIM's custodian, Citibank — a restriction that applies to all NBIM employees, the letter said. There is also a 400 million kroner limit on deposits with a single bank, although Norges Bank's executive board "may grant exemptions from this limit for Tangen's custodian bank."

    Changes are to be implemented as soon as possible.

    Related Articles
    Norges shifts real estate CIO to special adviser
    Norges Bank renegotiates CEO contract amid scrutiny
    Norges Bank CEO apologizes for travel oversight
    Recommended for You
    auckland_new_zealand_1550-main_i.jpg
    NZ Super posts 11.9% return for fiscal year
    A sign sits on the window of the Norges Bank building in Oslo, Norway, on Feb. 5, 2019
    Norway's wealth fund to close China-based representative office
    handshake with contract 1550_i.jpg
    NZ Super takes stake in financial services provider Euroclear
    Multiple Tailwinds Propel Private Credit
    Sponsored Content: Multiple Tailwinds Propel Private Credit
    Sponsored
    White Papers
    2023 Hot Topics in Retirement and Financial Wellbeing
    Bonds: Shaken, but Not Stirred
    Today’s rate cycle and US equities in target date portfolios
    A Study of Allocations to Alternative Investments by Institutions and Financial…
    Unlocking Hidden Value in Japan
    The Art of the Possible in Data Automation for Institutional Investors
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • Consultants
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2023
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars