Norway's Fund Books Most Successful Year in 2017

Norway's sovereign wealth fund returned $131 billion last year, or 13.7%. Stock market boom paid off. But note this: "Its biggest equity investments in 2017 were Apple Inc., Nestle SA and Royal Dutch Shell Plc." Now the fund wants to drop all oil and gas investments. Wise? Hmmm.

Share this post


Link to post
Share on other sites

8 hours ago, Marina Schwarz said:

Norway's sovereign wealth fund returned $131 billion last year, or 13.7%. Stock market boom paid off. But note this: "Its biggest equity investments in 2017 were Apple Inc., Nestle SA and Royal Dutch Shell Plc." Now the fund wants to drop all oil and gas investments. Wise? Hmmm.

They don't even know what they're going to do yet. I say that financially speaking, it is unwise in the short term. Long term, it kind of makes sense. I doubt they are seriously motivated by love for the climate, and more motivated by the fact that sooner or later, oil and gas stocks will wane as renewables gain prominence. Better to go out now on a high--the new numbers from 2017 suggest that the time to get out is now.

Share this post


Link to post
Share on other sites

This is a $1 trillion fund and it's still investing it stocks. After a 9-year bull-run, it's not a bit worried that the bull is getting tired. 

Share this post


Link to post
Share on other sites

I think it has a good track record but I don't know how it fared during the last crisis. If it got through it with minimal damage, then it can do it again and there's no reason to worry. But with such a shift in the portfolio... I don't know. I hope it's not premature. Norway needs this money to finance its environmentalists so they can sue the government, after all.:D

  • Upvote 1

Share this post


Link to post
Share on other sites

PS Yes, they are prepared: 

The value of Norway’s $1 trillion sovereign wealth fund, the world’s largest, will fluctuate by 900 billion crowns and more, its CEO said on Tuesday, as the fund relies less on income from Norway’s oil production and more on the value of stock markets.

“We have to expect significant swings in coming years ... We have to expect value swings of more than 900 billion crowns ($114.93 billion),” Yngve Slyngstad told a news conference.

Share this post


Link to post
Share on other sites

The oil and gas stocks were its worst performing last year. Apple was its darling, also Tencent and Microsoft. 

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0