External management
Areas and markets where the Fund’s own management organization is not assessed to have the necessary efficiency are outsourced to external managers. Decision on how to manage assets is based on an overall asessment of expertise, flexibility and costs. At present, just over 43 percent of the Fund’s net assets are under external management.
Responsibility for the Fund’s external managers is assigned to a special unit whose tasks include tendering for external managers, continuous do performance measurement and evaluation of the chosen managers and, if necessary, replace managers.
- External management may include all asset classes in the Fund’s portfolio as well as the allocation between them
- The investment philosophy is based on a “core-setellite” approach, i.e. fewer managers with either basic or specialist mandates
- Diversification of risk is a key consideration in creating the manager mix and is carried out in many dimensions (such as investment approaches, management styles, risk and return objectives)
- The investment horizon varies between managers
- Continuous performance measurement and evaluation of managers follows a systematic process
- Managers are normally evaluated on a rolling 3-year basis
Read more about the Fund's external managers
and the selection process for external managers