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Friday, 17 February 2017

Norway plans shake-up of $900bn oil fund

Norway plans shake-up of $900bn oil fund:

"Norway’s government has proposed the biggest changes to the world’s largest sovereign wealth fund in decades, cutting the amount of oil money the country can spend each year and tilting the fund towards higher risk by investing about $90bn more in stock markets.

The $900bn oil fund should be able to invest 70 per cent of its assets in equities, up from 60 per cent, the centre-right government said as it backed proposals made by the fund itself and an expert group.

The shift, which needs parliamentary approval, would be significant for global markets since the fund on average already owns 1.3 per cent of every listed company. The increased investment in equities would come at the expense of buying bonds as the oil fund, which has an investment horizon of a century or more, tries to increase its returns."

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