Norway’s $1 Trillion Wealth Fund Says Negative Rates `Top Concern’
Norwegian wealth fund rises to record 10 trillion kronor
Norway's largest sovereign wealth fund rises to NOK 10 trillion ($ 1.09 trillion), boosted by growth in global markets and stronger euro and dollar.
The fund reached an important milestone in its development as its government regulators grappled with changes in development strategy, including how to deal with climate risks and the proposed large-scale investment transfer to the United States..
Created in 1996 to preserve windfall oil profits for future generations, the fund has almost tripled its annual GDP Norway, significantly exceeding initial forecasts.
«When the fund was created, no one thought that it would pass the 10,000 billion kroons mark. We are lucky to find oil», – said fund chief executive Yngve Slingstad in a statement confirming the record.
«Investment returns on global financial markets were so high that it can be compared to the rediscovery of an oil field.», – he said.
According to the fund's website, it was determined that at 08:57 GMT the cost of Norway's state pension fund reached 10 trillion for the first time Norwegian krone is more than $ 200,000 for every man, woman and child in Norway.
World’s Largest Sovereign Wealth Funds since 1854. Top: Norway’s 1 TRILLION Government Pension Fund.
Commonly known as an oil fund, and operated by a division of the central bank, he invests about 70% of funds in global equities and about 28% in an asset portfolio with fixed income. And the remainder in non-listed funds real estate.
On August 27, the central bank issued a proposal that could ultimately lead to a decision to move more than $ 100 billion from European stock markets to the United States, although it could take years to get approved..
The $ 750 billion stock portfolio has historically been focused on investing in those European countries that import the most goods and services to Norway.
The fund insists that a move away from Europe will not be a verdict for the continent's outlook, but will reflect a desire to apply neutral weights to global equity markets and thus diversify risks.