Norway's SWF Expands Investments in Asia

The fund is following a trend among sovereign wealth investors boosting investments in the Asia-Pacific region.

(July 1, 2010) — Norway’s sovereign wealth fund, the world’s second largest, plans to boost investments in Asia to take advantage of the region’s strong economic growth.

The fund follows the lead of other sovereign wealth investors including Temasek Holdings Pte and the Qatar Investment Authority that have also upped their investments in the region.

Norges Bank Governor Svein Gjedrem, who was in Singapore as part of yesterday’s opening of the SWF’s second Asian office, said the fund is currently underweight in Asia. The SWF’s new Singapore office will be responsible for portfolio management and securities trading and will help NBIM’s existing office in Shanghai to cover the increasingly important Asia region, the fund stated in a release. Currently, the fund has about $1.1 billion invested in Singapore.

“An office in Singapore will strengthen our operations in Asia,” commented Gjedrem. “Having a presence in a region with strong economic growth is important for achieving good management results.”

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Sigmund Kyrdalen, a senior portfolio manager at NBIM who managed its London office for two years, has been appointed general manager in Singapore.

Norway invests the country’s oil and gas revenue abroad in a fund called the Government Pension Fund Global, which had a market value of almost 2.8 trillion Norwegian crowns at the end of June. Around 10% of the fund is invested in Asia, and around 15% of its equity investments are in Asian companies.

In addition to Singapore, NBIM has offices in Oslo, London, New York and Shanghai.



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

State Street Sues Former Execs Over 'Employee Raid'

The firm's suit alleges that three of its former executives violated agreements they signed regarding confidential information they gained about State Street’s securities lending business in the course of their employment.

(July 1, 2010) — State Street Corp. is in the process of suing three of its former executives for conducting a so-called “employee raid” of the bank’s securities lending business while violating confidentiality agreements.

“State Street requires its senior managers adhere to their employment and confidentiality agreements to protect the interests of its clients, investors and employees,” a company spokesperson said to ai5000. “State Street believes that these former employees breached their obligations to State Street, and we intend to protect the Company against this wrongdoing.”

The complaint, filed June 23 in Massachusetts Superior Court in Boston, seeks an injunction and damages from Craig V. Starble, Peter A. Economou, Paul F. Lynch and the company they created, Premier Global Securities Lending. Starble, a former head of securities lending at State Street who left the firm in March 2009, recruited eight of his former colleagues — including Lynch, head of global trading, and Economou, Starble’s replacement — to join PGSL, a third-party securities lending agent that he founded in October 2009, Global Custodian reported.

In a statement from PGSL obtained by Global Custodian, the firm categorically rejects any wrongdoing, noting that the former State Street staff that followed Starble to PGSL were “at-will employees at State Street.” Additionally, none of the employees had a non-compete agreement with State Street, the firm noted.

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State Street has not sought any emergency injunctive relief, and PGSL has yet to receive a court order.

Separately, State Street has appointed Nick Bonn to head its securities finance business after his predecessor, Economou, left to join PGSL, led by Starble. Bonn most recently served as global head of sales and client development for State Street Global Markets.

Street also recently appointed Doug Stern and Yvonne Wong to its Enhanced Custody business, the servicing solution for long/short strategies.



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

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