Norway Sovereign Wealth Fund Urged to Add More Stocks
Norway’s $874 billion wealth fund has been urged to add $87 billion in stocks as low interest rates and a weak global economy will lower returns to slightly above 2% over the next 30 years. The government appointed commission has recommended to increase the stock mandate from 60% to 70%.
“Norway’s $874 billion wealth fund has been urged to add $87 billion in stocks as low interest rates and a weak global economy will lower returns to slightly above 2% over the next 30 years.”
Norway has been looking for ways to increase the returns as interest rates have declined since the aftermath of the financial crisis. The real return goal of the wealth fund has been 4%. The government is now withdrawing money from the fund for the first time to make up for lost oil income after oil prices plummeted over the past two years.
Related Reports: Bloomberg,
About Government Pension Fund of Norway
The Government Pension Fund Global was set up in 1990 to underpin long-term considerations when phasing petroleum revenues into the Norwegian economy. Norges Bank Investment Management manages the fund on behalf of the Ministry of Finance, which owns the fund on behalf of the Norwegian people. The ministry determines the fund’s investment strategy, following advice from among others Norges Bank Investment Management and discussions in Parliament. The management mandate defines the investment universe and the fund’s strategic reference index.
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