$1.43 Trillion Norway Sovereign Wealth Fund Norges Bank Investment Management Plans to Invest $40 Billion to $70 Billion in Private Equity Funds Representing 3% to 5% of Total Portfolio, Final Decision to be Made in 2024 by Norway Parliament
29th November 2023 | Hong Kong
Norway sovereign wealth fund Government Pension Fund Global managed by Norges Bank Investment Management with $1.43 trillion AUM (Assets under Management) is planning to invest $40 billion to $70 billion in private equity funds (representing 3% to 5% of total portfolio), with the final decision to be made in 2024 by Norway parliament. In 2023 March, the Norwegian finance ministry had instructed the Board of Norges Bank to review allocating into private equity. Earlier in August 2023, Norges Bank reported returns of +10% equivalent to $140 billion for 2023 1st half, with portfolio performance of Equities +13.7%, Fixed Income +2.2%, Unlisted Real Estate -4.6%, Unlisted Renewal Energy Infrastructure -6.5%. Government Pension Fund Global Portfolio Allocation – 71.3% Equities, 26.4% Fixed Income, 2.3% Unlisted Real Estate, 0.1% Unlisted Renewal Energy Infrastructure. More info below.
“ $1.43 Trillion Norway Sovereign Wealth Fund Norges Bank Investment Management Plans to Invest $40 Billion to $70 Billion in Private Equity Funds Representing 3% to 5% of Total Portfolio, Final Decision to be Made in 2024 by Norway Parliament “
$1.43 Trillion Norway Sovereign Wealth Fund Norges Bank Investment Management to Close Shanghai Office, Invested 850 Companies with $42 Billion Value
9th September 2023 – Norway sovereign wealth fund Government Pension Fund Global managed by Norges Bank Investment Management with $1.43 trillion AUM (Assets under Management) is closing the Shanghai office (China), with the Shanghai office (8 people) invested in 850 companies with $42 billion value. Norges Bank Investment Management: “The decision is driven by operational considerations and does not affect the fund’s investment strategy or our investments in China. Our representative office in Shanghai has been in operation since November 2007. We currently have 8 people at the office. Over the years, our Singapore office has increasingly served as the hub for the whole of the Asian region and has been built up to take care of all operational functions, including for China. Effectively, the decision to close the office in Shanghai is therefore only an adjustment of our operating business model … … We will ensure that the closing process is conducted in an orderly manner for all affected persons at the office and in line with local requirements and procedures.” Earlier in August 2023, Norges Bank reported returns of +10% equivalent to $140 billion for 2023 1st half, with portfolio performance of Equities +13.7%, Fixed Income +2.2%, Unlisted Real Estate -4.6%, Unlisted Renewal Energy Infrastructure -6.5%. Government Pension Fund Global Portfolio Allocation – 71.3% Equities, 26.4% Fixed Income, 2.3% Unlisted Real Estate, 0.1% Unlisted Renewal Energy Infrastructure. More info below.
$1.43 Trillion Norway Sovereign Wealth Fund Government Pension Fund Global Reports Returns of +10% Equivalent to $140 Billion for 2023 1st Half, Equities +13.7%, Fixed Income +2.2%, Unlisted Real Estate -4.6%, Unlisted Renewal Energy Infrastructure -6.5%, Portfolio Allocation of 71.3% Equities, 26.4% Fixed Income, 2.3% Unlisted Real Estate, 0.1% Unlisted Renewal Energy Infrastructure
18th August 2023 – Norway sovereign wealth fund Government Pension Fund Global with $1.43 trillion AUM (Assets under Management) has reported returns of +10% equivalent to $140 billion for 2023 1st half, with portfolio performance of Equities +13.7%, Fixed Income +2.2%, Unlisted Real Estate -4.6%, Unlisted Renewal Energy Infrastructure -6.5%. Government Pension Fund Global Portfolio Allocation – 71.3% Equities, 26.4% Fixed Income, 2.3% Unlisted Real Estate, 0.1% Unlisted Renewal Energy Infrastructure. CEO of Norges Bank Investment Management Nicolai Tangen: “The stock market has been very strong in the first half of the year, following a weak year in 2022. Especially technology stocks have seen significant growth, largely driven by the increased demand for new solutions in artificial intelligence.”
$1.43 Trillion Norway Sovereign Wealth Fund Government Pension Fund Global Reports Returns of +10% Equivalent to $140 Billion for 2023 1st Half
16th August 2023 – In the first half of 2023, the Government Pension Fund Global returned 10,0 percent, equivalent to 1 501 billion kroner. The return on the fund’s equity investments was 13.7 percent, the return on the fixed income investments was 2.2 percent, whereas investments in unlisted real estate returned -4.6 percent. The return on unlisted renewable energy infrastructure was -6.5 percent.
The fund’s return was 0.23 percentage points less than the return on the benchmark index, equivalent to -33 billion kroner. The krone depreciated against several of the main currencies during the quarter. The currency movements contributed to an increase in the fund’s value of 980 billion kroner. In the first half of the year, inflow into the fund amounted to 389 billion kroner.
The fund had a value of 15,299 billion kroner as at 30 June 2023. 71.3 percent of the fund was invested in equities, 26.4 percent in fixed income, 2.3 percent in unlisted real estate, and 0.1 percent in unlisted renewable energy infrastructure.
World 2nd Largest Sovereign Wealth Fund of Norway Reports Portfolio Returns of -14.1% in 2022, $165 Billion Losses with $1.25 Trillion Assets
2nd February 2023 – The world 2nd largest sovereign wealth fund Norway Government Pension Fund Global has reported a -14.1% returns (performed 0.88% better than benchmark) in 2022, with $165 billion of losses and $1.25 trillion of total assets. Equity generated -15.3%, fixed income generated -12.1%, unlisted real estate generated -0.1% and unlisted renewable energy infrastructure generated 5.1%. Of the $1.25 trillion portfolio, 69.8% are in equities, 27.5% are in fixed income, 2.7% are in unlisted real estate and 0.1% are in unlisted renewable energy infrastructure.
CEO of Norges Bank Investment Management Nicolai Tangen: “The market was impacted by war in Europe, high inflation, and rising interest rates. This negatively impacted both the equity market and bond market at the same time, which is very unusual. All the sectors in the equity market had negative returns, with the exception of energy
Norges Bank Investment Management: “The krone depreciated against several of the main currencies during the year. The currency movements contributed to an increase in the fund’s value of 642 billion kroner. Inflow into the fund amounted to 1,085 billion kroner.”
CEO of Norges Bank Investment Management Nicolai Tangen
Nicolai Tangen is responsible for the management of the Government Pension Fund Global. This includes the daily operation and the development of Norges Bank Investment Management.
Tangen joined Norges Bank Investment Management as Chief Executive Officer on 1 September 2020. Tangen was previously Chief Executive Officer and Chief Investment Officer in AKO Capital, which he founded in 2005. He also set up the AKO Foundation in 2013, which supports charitable initiatives to improve education, promote the arts and mitigate climate problems. Prior to this, Tangen was a partner and senior analyst at Egerton Capital and an equity analyst at Cazenove & Co. Tangen holds a Bachelor’s Degree in finance from the Wharton School and Master’s Degrees in the History of Art from the Courtauld Institute of Art and in Social Psychology from the London School of Economics. He has also studied Russian at the Norwegian Armed Forces’ School of Intelligence and Security.
Norges Bank Investment Management
We are responsible for the operational management of the oil fund. Our objective is the highest possible return on the fund. We aim to achieve this in a safe, efficient, responsible and transparent manner, and within government guidelines. The fund is invested worldwide and so we are an international organisation with a global outlook.
Norway Government Pension Fund Global
Norway’s oil fund, or the Government Pension Fund Global which is its official name, was created after we discovered oil in the North Sea. The fund was set up to shield the economy from ups and downs in oil revenue. It also serves as a financial reserve and as a long-term savings plan so that both current and future generations get to benefit from our oil wealth.
In 1969, one of the world’s largest offshore oilfields was discovered off Norway. Suddenly we had a lot of oil to sell, and the country’s economy grew dramatically. It was decided early on that revenue from oil and gas should be used cautiously in order to avoid imbalances in the economy. In 1990, the Norwegian parliament passed legislation to support this, creating what is now the Government Pension Fund Global, and the first money was deposited in the fund in 1996. As the name suggests, it was decided that the fund should only be invested abroad. Oil revenue has been very important for Norway, but one day the oil will run out. The aim of the fund is to ensure that we use this money responsibly, think long-term and so safeguard the future of the Norwegian economy.
Although revenue from oil and gas production is transferred to the fund, these deposits account for less than half the value of the fund. Most of it has been earned by investing in equities, fixed income, real estate and renewable energy infrastructure.
The fund is now one of the world’s largest funds, owning almost 1.5 percent of all shares in the world’s listed companies. This means that we have holdings in around 9,000 companies worldwide, entitling us to a small share of their profits each year. In addition, the fund owns hundreds of buildings in some of the world’s leading cities, which generate rental income for us. The fund also receives a steady flow of income from lending to countries and companies. By spreading our investments widely, we reduce the risk of the fund losing money.
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