Norway has always said its sovereign wealth fund belongs to the people. But recently, that’s needed a bit of clarification.
Since hitting a record 10 trillion kroner ($1.1 trillion) last month, the fund has noticed an uptick in inquiries from Norwegians wondering whether they can now withdraw their share. Requests range from people asking for their full pro-rata stake — which, given Norway’s population of about 5.3 million, comes to more than $200,000 per person — to less serious pleas for a few coins to buy a can of soda.
“It’s nice that people get involved and are aware that this fund belongs to everyone,” said Marthe Skaar, a spokeswoman for Norges Bank Investment Management, which manages the fund from Oslo.
Though some Norwegians may be disappointed to learn they can’t make withdrawals, Skaar says the sudden spike in public interest in the fund represents a good opportunity to explain it’s also supposed to benefit future generations. She said that such requests are nothing new and the fund doesn’t keep a precise tally, although there had been an “upswing” after the valuation milestone.
The Government Pension Fund Global, as it is officially known, isn’t really a pension fund. Its purpose is to ensure that Norway keeps profiting from its oil wealth long after the fossil-fuel era ends. It only invests outside Norway, to avoid overheating the domestic economy.
Fiscal Stimulus
The government also spends some of its oil wealth on present-day Norwegians. After a drop in crude prices, it was forced to tap the fund to pad its budget in a rare example of fiscal stimulus in Europe.
A lot of oil-producing countries have set up wealth funds, but Norway’s remains a unique experiment in natural-resource wealth management. The fund’s mandate is anchored in Parliament, and has evolved over time with ethical restrictions on tobacco, certain weapons and most coal producers.
Norway’s wealth fund holds roughly 1.5% of the world’s listed equities. The past decade has seen a steep increase in its value, after a buying spree on cheap stocks during the financial crisis resulted in a quadrupling of its size since 2008. More than half the investor’s value is from its returns.
Source: Bloomberg
Can’t stop reading? Read more
Granite Creek Capital Partners Closes $300m Fund for Lower Middle Market Investments
Granite Creek Capital Partners has held a final, oversubscribed, and hard cap closing of its third investment fund, Granite Creek FlexCap III LP, with $300m of capital. Granite Creek began fundraising for the FlexCap III in 2022 with an initial target of $250m. The...
Blackstone Backs Redpin with £140m to Transform Property Payments
Redpin Holdings Limited - owner of leading global digital international payment services to private clients and SMEs Currencies Direct and TorFX – launches as it implements a new strategy to become the market leader in embedded software and payments for residential...
Carlyle’s AlpInvest Secures $1.3bn Continuation Fund for Kinderhook
Kinderhook Industries, LLC (“Kinderhook”), a leading middle market private equity firm, announced the closing of a Continuation Fund capitalized by AlpInvest Partners (“AlpInvest”), a subsidiary of global investment firm Carlyle (NASDAQ: CG), and a leading group of...