Norwegian SWF steps closer to multi-billion equity investment

NorwayNorway’s politicians will discuss allowing the country’s sovereign wealth fund to increase its equity investments, potentially by billions of euros. Yesterday, the Norwegian government announced it was discussing an increase to the amount of equities the Norway Government Pension Fund Global can invest in, up to 70% of its assets under management from 60%. This would mean that the $900 billion (€846.7 billion) fund could potentially invest an extra $90 billion in stock markets, further diversifying the funding of its liabilities away from oil revenue. The fund already owns approximately 1.3% of every listed company, meaning any increase – which needs parliamentary approval – could have a significant effect on global markets. The fund is proposing to move away from fixed income following the crash in sovereign bond yields, in some cases going into negative rates. “The expected return on equities exceeds that of bonds, thus supporting the aim of increasing the fund’s purchasing power. At the same time, equities carry higher risks. The proposal to increase the equity share is based on a comprehensive assessment of the recommendations received,” said the Norwegian government in a statement. ©2017 funds europe

Sponsored articles

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.



Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.