Go to Investment Europe homepage
  • Register for Investment Europe
  • Join Investment Europe’s LinkedIn group
  • Follow Investment Europe on Twitter
  • Investment Europe on your mobile
  • Investment Europe RSS feeds
addtextimg

Norway SWF in perspective after election

  • By: Jonathan Boyd
  • 10 Sep 2013
  • Be the first to comment
oil-rig-2

Norway's just concluded general election is likely to lead to a Conservative Party led coalition, with concerns raised about a possibly change in policy regarding the country's giant sovereign wealth fund.

The Pension Fund Global, funded by the country's oil and gas sector, is worth some NOK4.55trn (€577bn) according to the calculator visible on the website of Norgest Bank Investment Management, the manager of the fund, which answers to the country's finance ministry and Parliament. Other calculations estimate that the fund owns the equivalent of more than 1% of every listed company in the world.

The fund has benefited over the past year, as gas exports from Norway surpassed those of Russia to become the biggest exporter to the EU.

The fund has been branching out into property assets. Yesterday it announced a $684m deal to buy 45% of Times Square Tower in New York from Boston Properties.

However, some of the junior coalition partners to be have raised the prospect of using more of this wealth to fund spending on education and other areas of the economy - at a time when near-full employment is creating an interest rate headache for the Norwegian central bank.

Ahead of the election, one incumbent minister reportedly proposed that the property assets of NBIM be split from the fixed income assets, as part of what may have been pre-election positioning.

NBIM reported a negative return from fixed income investments through the second quarter of 2013, while equity and property investments made positive returns.

 

 

 

Visitors Comment

blog comments powered by Disqus

Market

Regions

European map
Benelux France Iberia Italy Germany Switzerland Austria Emerging Europe Scandinavia UK Ireland

Print Edition

Events

mark-phelps

AB's Phelps to speak on concentrated portfolios in Hamburg

Mark Phelps, head of Concentrated Global Growth at AB, will join InvestmentEurope's Pan-European Fund Selector Summit in Hamburg.

richard-halle-m-g

M&G's Richard Halle and Daniel White to speak in Hamburg

Richard Halle and Daniel White are set to take part in the InvestmentEurope Autumn Pan-European Fund Selector Summit, which takes place in Hamburg 15-17 October.