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
Mirova Raises €2bn for Sixth Energy Transition Infrastructure Fund, Targeting Net Zero
Asset manager Mirova plans to launch its sixth strategy dedicated to energy transition infrastructure, aiming to raise up to €2bn subject to regulatory approval. The strategy - Mirova Energy Transition 6 (MET6) - will support decarbonisation mainly in Europe, helping...
Veritas Capital and Platinum Equity Eye Jacobs’ $4bn Government Consulting Unit
U.S. buyout firms Veritas Capital and Platinum Equity are vying to acquire Jacobs Solutions Inc's (J.N) government consulting business, competing against rival contractor Amentum, according to people familiar with the matter. Dallas-based Jacobs is seeking final...
AlpInvest, Atalaya, Lexington, and Pantheon Acquire $2bn Wells Fargo PE Investments
Wells Fargo & Company WFC divested around $2bn of private equity investments in certain funds to a group of leading investors. The move demonstrates the bank’s active investment portfolio management strategy. Particularly, the company sold its investment in...