World’s largest sovereign fund invests in 145 Malaysia-listed firms

KUALA LUMPUR: Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund with a market value of about RM5.48 trillion, has invested in 145 Malaysia-listed companies as at December 31 last year.

This included Genting Malaysia Bhd, MR DIY Group (M) Bhd and Top Glove Corp Bhd, according to latest updates by the Norwegian central bank’s asset management unit on its website.

Norges Bank Investment Management is the asset management unit of Norwegian central bank Norges Bank, which has been tasked to manage the pension fund, often referred to as Norway’s oil fund.

On Genting Malaysia, Norges Bank Investment said the fund owned a 0.7 per cent stake worth US$26.35 million and 0.26 per cent stake in MR DIY worth US$12.83 million as at December 31, 2020.

The fund held a 0.89 per cent stake in Top Glove worth US$108.68 million, it added.

The fund’s Malaysia-listed equity portfolio includes a 0.35 per cent stake in Nestle (Malaysia) Bhd, 0.74 per cent in Carlsberg Brewery Malaysia Bhd, 0.86 per cent stake in Alliance Bank Malaysia Bhd and 2.59 per cent in Bursa Malaysia Bhd.

Norges Bank Investment said the investments were spread across most markets, countries and currencies to achieve broad exposure to global growth and value creation.

Overall, it said the fund had invested in 9,123 companies at the end of 2020, down from 9,202 a year earlier.

It had holdings of more than two per cent in 1,278 companies, and more than five per cent in 40 companies.

“Our investment strategies aim to exploit the fund’s characteristics as a large, global investor with limited short-term liquidity requirements in order to achieve a high return with acceptable risk. The fund’s investment strategies fall into three main strategies: fund allocation, security selection and asset management,” it said.

The Government Pension Fund Global had a market value of 10,914 billion kroner (US$1.28 billion) at the end of 2020.

“The coronavirus pandemic in 2020 led to demanding working conditions and large and sudden movements in financial markets. The investments in the Government Pension Fund Global nevertheless returned 10.9 per- cent in 2020, which is 0.27 percentage point more than the return on the benchmark index the fund is measured against.

“The executive board is pleased that a solid excess return was achieved in a turbulent year,” Norges Bank Investment said.

Source: NST