The financial objective is to preserve the real long-term value of the Foundation’s assets, and to generate sufficient returns to support a substantial, stable level of grants and donations to social and philanthropic initiatives.
The Foundation is a long-term investor focused on long term absolute return.
The investment portfolio follows a multi-asset, multi-manager diversification strategy. The portfolio is invested across asset classes, sectors and regions, and is managed with a defined risk framework. The portfolio is primarily invested through external mandates, favouring long-term relationships with quality asset managers.
The investment mandate sets the following strategic weights:
|Cash and money market||5 %|
|Fixed income||25 %|
|Private Equity||10 %|
|Real Estate||10 %|
Within the equity portfolio, investments are made mostly through active mandates. Though active management is preferred, the use of passive mandates may be used to secure flexibility. The equity portfolio is divided into Norwegian equities and global equities. The equity portfolio consists of both long only and long short equity strategies as well as both niche and diversified mandates.
The fixed income portfolio invests across most fixed income segments, distinguishing between domestic and global bonds. The fixed income portfolio is fully hedged against currency fluctuations. Within fixed income investments are done primarily to active mandates. While the Foundation overall primarily invests through funds, the Norwegian fixed income portfolio consists of a few single securities within hybrid capital and inflation-linked bonds. Single securities are not actively traded.
The private equity portfolio consists of a global mix of buyout, growth and venture funds made mainly through primary commitments, but also some secondary transactions and fund of funds. We invest in managers that contribute with hands-on expertise and knowledge to build great companies. The portfolio is diversified across different sectors, industries, vintages and company sizes. The mandate is flexible, but the portfolios focus is funds in the Nordics, Europe and US that invest in the middle-market or lower middle-market.
The Foundation’s real estate portfolio is invested with a global mandate, with a Norwegian and Nordic core/core+ property main focus. The portfolio consists of funds invested in offices, logistics, retail, hotels etc. The funds we invest in are mostly unlevered, but we also invest in funds with low to moderate leverage. We seek managers that actively manage the properties and who provides value in their respective sectors.