Trending News

Blog Post


Norway’s wealth fund to do away with extra dangerous shares, says CEO By Reuters 

© Reuters. FILE PHOTO: Nicolai Tangen speaks throughout a press convention, in Oslo

OSLO (Reuters) – Norway’s $1.3 trillion sovereign wealth fund will do away with extra firms from its portfolio if it considers them too dangerous, its new chief government Nicolai Tangen mentioned on Thursday.

Tangen took the helm of the fund on Sept. 1 and the transfer would mark a departure because it has till now broadly tracked a worldwide firm reference index set by the finance ministry.

Whereas the fund will proceed to trace the index, the fund’s administration, Norges Financial institution Funding Administration (NBIM), ought to be extra selective when selecting shares, Tangen mentioned.

“(NBIM) can do extra on unfavourable choice, do away with issues that are unhealthy,” Tangen, a former hedge fund supervisor, instructed a digital seminar.

The shift in strategy comes as the federal government plans to chop the fund’s firm reference index by 25% to 30% to enhance the fund’s follow-up of corporations.

The transfer displays the rising consciousness amongst worldwide traders about threat within the environmental, social and company governance (ESG) area.

“The superb instance final yr … is how we had been just about out of Wirecard when that factor exploded and it saved the fund an infinite sum of money,” Tangen instructed the seminar, which was revealed on the fund’s web site.

“So by forensic accounting, by people who find themselves specialists in discovering fraud, I feel we are able to do extra,” he mentioned.

For a graphic on Market worth of Norway’s wealth fund:

The fund divested from the collapsed German fee providers agency in 2020, fund knowledge confirmed, whereas on the finish of 2019 it had a 1.14% stake within the agency value $170 million. Wirecard filed for insolvency final yr owing collectors virtually $4 billion.

The fund at the moment holds stakes in about 9,100 firms. The finance ministry has proposed that its reference index be lower to six,600 firms from 8,800 now, resulting in a discount within the variety of firms it invests in over time.

The federal government guidelines in a minority and so wants the approval of parliament to cross its proposals.

Disclaimer: Fusion Media wish to remind you that the information contained on this web site isn’t essentially real-time nor correct. All CFDs (shares, indexes, futures) and Foreign exchange costs will not be offered by exchanges however quite by market makers, and so costs will not be correct and will differ from the precise market value, which means costs are indicative and never applicable for buying and selling functions. Subsequently Fusion Media doesn`t bear any accountability for any buying and selling losses you would possibly incur because of utilizing this knowledge.

Fusion Media or anybody concerned with Fusion Media is not going to settle for any legal responsibility for loss or harm because of reliance on the data together with knowledge, quotes, charts and purchase/promote alerts contained inside this web site. Please be absolutely knowledgeable relating to the dangers and prices related to buying and selling the monetary markets, it is likely one of the riskiest funding varieties attainable.

Supply hyperlink

Related posts

Leave a Reply

Required fields are marked *