Chinese stocks account for the highest proportion of all emerging markets invested by Norwegian governments global pension fund, reaching 4.3%, which continues to increase compared with 3.6% at the end of 2018.
Selling houses and buying shares is the basic operation
What is the origin of Norwegian governments global pension fund? According to the data, Norways global pension fund, formerly known as the oil fund, was renamed as the global pension fund in 2006 with the adoption of the Norwegian pension fund law.
By the end of 2019, the total assets under the Norwegian governments global pension fund management amounted to NOK 10.09 trillion, equivalent to RMB 7.53 trillion. So what is the historical performance of this fund?
It can be seen from the above figure that in the past 22 years, only 5 years of Norways global pension fund have received negative returns, and the rest are positive returns. The funds latest investment return in 2019 was 19.95%, the second highest in its history after 2009.
The outstanding investment performance mainly comes from its attention to equity assets.
According to an in-depth study of overseas funds released by Societe Generale Securities, the equity asset ratio of Norwegian governments global pension fund increased from 40.7% in 1998 to 70% in 2019.
Despite the excellent performance of real estate investment, the Norwegian Ministry of Finance believes that there is a long-term structural adjustment in the real estate market cycle, especially some real estate in Europe and the United States are close to historical highs, and will continue to sell plus rights and interests in the future.
In recent years, China continues to increase its position
As early as the end of 2018, CEO yongve slyngstad of Norways sovereign wealth fund told Reuters that in the future, it is inevitable to increase investment in China together with other major global funds. The process could last for 10 years, not end in a year or two. Said Yngve slyngstad.
According to the analysis of Societe Generale Securities in the research report, from the perspective of specific countries and regions, although the geographical scope of Norwegian global pension fund investment is very wide, the top ten regions with the largest positions account for more than 80% of the total scale, and more than 70% of the companies are in these ten regions, with a very high concentration.
It is worth noting that since the first allocation of the mainland market, the position in China has risen rapidly. At present, it ranks the seventh in scale and the third in number of enterprises. It is also the only region in emerging markets that both enter the top ten. In the future, the fund may continue to expand its investment in the mainland market. Industrial Securities.
Alibaba and Tencent
By the end of 2019, two Chinese stocks appeared on the top 20 heavy positions list of Norwegian global pension fund, namely Alibaba and Tencent holding, with positions worth NOK 51.992 billion (about 38.5 billion yuan) and NOK 34.056 billion (about 25.25 billion yuan) respectively.
According to the analysis of Societe Generale Securities, Norways global pension funds heavyweight stocks mainly have four characteristics:
First, the average holding time is more than 9 years, more than 40% of the companies hold more than 10 years;
Second, more than half of the heavyweight stocks come from American companies, which prefer technology sector in industrial allocation;
Third, they prefer the stocks with super market value, and nearly 80% of the enterprises with positions exceed 100 billion US dollars;
Fourth, the price earnings ratio of 80% of the holding companies is less than 30 times, and the performance valuation match is more reasonable.
According to the research report, since 2008, Norwegian global pension fund has invested in 1560 Chinese enterprises, 26 of which have held positions for more than 10 years. These 26 companies are basically core assets preferred by foreign investors.
Source: editor in charge of Shanghai Securities News: Yang bin_nf4368