According to an article by Reuters, there are currently plans to postpone the investments of the Norwegian state pension fund – away from investments from Europe. Due to the ongoing uncertainties surrounding Brexit and the slowing economy in Europe’s largest economy, Germany, investor confidence in European stocks has fallen. At the same time, however, the sovereign wealth fund benefited from the very strong performance of the two technology giants Microsoft and Facebook.
However, the Norwegian central bank has not yet issued a final recommendation. Various options are currently being examined and recommendations made to the Ministry of Finance, which will ultimately determine the composition of the fund.
The pension
fund now manages more than 1 trillion US dollars. The Norwegian state fund,
which is now so valuable that every inhabitant of Norway could draw 197,000
euros in assets from it, consists of 70% shares. However, investor targeting
has shifted considerably in recent years in favour of American companies.
“This allocation is also part of our current review process,” Egil
Matsen, the SWF’s responsible manager, told Reuters.