Norges Bank drops 21 external managers including BlackRock and “zero-based budgeting” firm 3G Capital

Some 21 asset managers have been dropped over the past year by the Norwegian central bank arm which manages the huge Government Pension Fund global sovereign fund, according to an updated roster of its external managers.

Norges Bank Investment Management, to coincide with the publication of its 2018 annual report, has updated its external managers list, which as at the end of last year ran a combined NOK322bn (€33bn).

It uses external managers for some equity investments, with “specialist expertise in clearly defined investment areas.”

Among the names missing from this year’s roster, compared to last year’s listing, are some leading firms like BlackRock and DNB Asset Management.

BlackRock was on the roster in one form or another – with both equity and fixed income mandates variously – since 2001, according to a spreadsheet provided by Norges. BlackRock and DNB declined to comment. The latter had been on the list since 2011.

Also missing from the list this year is 3G Capital, the Brazilian investment firm known for its “zero-based budgeting” techniques which has partnered with Warren Buffett’s Berkshire Hathaway on mega acquisitions like the Kraft Heinz deal. 3G has been approached for comment.

Earlier this month RI reported that NBIM had terminated its external environmental mandates and moved the c.NOK20bn (€2bn) assets in-house to cut costs.

The influential investor does not specify the mandates that its external managers run. Nor does it comment on any changes in managers. But some specific ESG managers, such as Ecofin (sustainable infrastructure – now part of Tortoise), Temporis (renewable/clean energy) and Water Asset Management (water) are absent from the roster. As at the end of last year it had 70 external managers in total.Some of the firms no longer on the new list include names like Pioneer Investments, which has been absorbed by Amundi.

The list also includes eight new names such as Brazil’s BTG Pactual and Threadneedle Asset Management (now Columbia Threadneedle Investments).

External managers no longer on roster (comparison between 2018 and 2017 lists):

3G Capital
Altus TFI
Andino
BlackRock
DNB Asset Management
Ecofin
Foord Asset Management
FPM Frankfurt Performance Management
GCA Investment Management
Greenwoods Asset Management
Hold Asset Management
Hybrid Partners and Asset Plus Fund Management
Kumpulan Sentiasa Cemerlang
Meritz Asset Management
Pioneer Investment Management
Rockbridge TFI
Saudi Fransi
Steyn Capital Management
Temporis Asset Management
Verno Capital
Water Asset Management

New managers on roster (comparison between 2018 and 2017 lists):
Amwal Capital Partners
APS Asset Management
BTG Pactual
DSP
Esaliens FTI
PT Samuel Asset Manajemen
SAM Asset Management
Threadneedle Asset Management