Warning of Decline in Norway’s Wealth Fund

Warning of Decline in Norway’s Wealth Fund

Norway’s central bank chief has warned on the increasing spendings of the oil revenue as he forsee a 50% loss of capital over the next 10 years for Norway’s sovereign wealth fund. The rise in oil cash spending which attributes to 20% of the budget and 8% of gross domestic product will need to be halted to protect the fund.

“Norway’s central bank chief has warned on the increasing spendings of the oil revenue as he forsee a 50% loss of capital over the next 10 years for Norway’s sovereign wealth fund.”

~ Bloomberg

Norway was forced to use the oil fund for the first time to cover budget needs, protect the economy due to a plunge in the oil prices.

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.

Visit: Government Pension Fund Norway

 


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Norway Sovereign Wealth Fund Urged to Add More Stocks

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.”

~Bloomberg

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.

Visit: Government Pension Fund Global

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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Brexit Takes a Toll on Norwegian Wealth Fund

Brexit Takes a Toll on Norwegian Wealth Fund

The Brexit has impacted Norway’s sovereign wealth fund as manager announced that they reduced valuations of its UK property portfolio by 5%. Almost a quarter of its NKr222 billion property portfolio is vested into UK with 16% of the total situated in London. UK commercial property in July has seen the biggest slide in value since 2009.

“The Brexit has impacted Norway’s sovereign wealth fund as manager announced that they reduced valuations of its UK property portfolio by 5%.”

~ Financial Times

The oil fund is not the first to downgrade UK property. A group of British funds focused on the area has implemented “fair value adjustments” after the referendum will likely reflect drops in the value of commercial property and six funds holding more than 15 billion in assets suspended trading as investors rushed for exits.

Related Reports: Financial Times

 

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.

Visit: Government Pension Fund Norway

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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  • For Press Release,  please contact press@thewealthinsider.com
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