World’s Largest Sovereign Wealth Fund Says Malaysia Equity Investments

KUALA LUMPUR (March 17): Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund with a market value of about NOK11.08 trillion (RM5.48 trillion) had invested in 145 Malaysia-listed companies including Genting Malaysia Bhd, MR DIY Group (M) Bhd and Top Glove Corp Bhd as at Dec 31, 2020, according to latest updates by the Norwegian central bank’s asset management unit.

Norges Bank Investment Management is the asset management unit of Norwegian central bank Norges Bank, which has been tasked to manage the Government Pension Fund Global, often referred to as  Norway’s oil fund, Norges Bank Investment Management said on its website.

On Genting Malaysia, Norges Bank Investment Management said the Government Pension Fund Global owned a 0.7% stake worth US$26.35 million as at Dec 31, 2020.

The Government Pension Fund Global also holds a 0.26% stake in MR DIY worth US$12.83 million and a 0.89% stake in Top Glove worth US$108.68 million, according to Norges Bank Investment Management.

The Government Pension Fund Global’s Malaysia-listed equity portfolio includes a 0.3% stake in AirAsia X Bhd, 3.28% stake in Bumi Armada Bhd and 2.59% stake in Bursa Malaysia Bhd.

“Although revenue from oil and gas production is transferred to the fund, these deposits account for less than half the value of the fund. Most of it has been earned by investing in equities, fixed income and real estate. “The fund is now one of the world’s largest funds, owning almost 1.5% of all shares in the world’s listed companies. This means that we have holdings in around 9,000 companies worldwide, entitling us to a small share of their profits each year.

“In addition, the fund owns hundreds of buildings in some of the world’s leading cities, which generate rental income for us. The fund also receives a steady flow of income from lending to countries and companies. By spreading our investments widely, we reduce the risk of the fund losing money,” Norges Bank Investment Management said.

Norges Bank Investment Management said the fund’s equity investments are spread across many different countries, sectors and companies to capture global value creation and diversify risk as best possible.

The fund’s investments are limited to companies listed on regulated exchanges and companies where the board has expressed an intention to apply for listing on an exchange, according to Norges Bank Investment Management.

“The fund may hold no more than 10% of the shares in a listed company. The FTSE Global All Cap stock index is the starting point for the fund’s equity investments and is the benchmark index applied by [Norway’s] Ministry of Finance,” Norges Bank Investment Management said.

According to Norges Bank Investment Management, the Government Pension Fund Global had in 2019 invested in 146 Malaysia-listed companies compared to 152 in 2018.

The 2019 list included AirAsia Group Bhd, Bumi Armada, Bursa Malaysia, Malayan Banking Bhd, Petronas Gas Bhd and Top Glove, Norges Bank Investment Management said.

Source: The Edge