IndependentInvestor Newsletter 085C of 20 02 2010 

Today's quote:"I'd compare stock pickers to astrologers. But I don't want to bad-mouth the astrologers." Eugene Farma, University of Chicago

 

Hello [NAME],

This is our eighty-fifth newsletter on current events and new developments, always from the viewpoint of the independent investor. If you are a new member, click here for general information about our newsletters.

This week we discuss a report on active asset management for the Norwegian sovereign wealth fund.

We hope you enjoy it.

Active asset management: OK (maybe) for Norway’s sovereign wealth fund (but not for you)

The Norwegian Government Pension Fund - Global is the entity that invests the funds generated by Norway’s prodigious oil revenues . It is one of the largest investors in the world. Recently three acclaimed financial experts were invited to address the governance of Norges Bank Investment Management (the fund manager). They issued on December 14, 2009 a report entitled Evaluation of Active Management of the Norwegian Government Pension Fund - Global. Why should it be of interest you? Firstly, because in the secretive world of asset management these types of reports are almost always confidential and therefore inaccessible to the public. Secondly, and more importantly, it contains important lessons on the limits of active management for institutional investors but which are even more relevant for the individual investor.

To read the balance of this commentary, please click here to access the full text on our site.