Norway’s Sovereign Fund To Increase Diversification to Boost Returns

Norway’s $890 billion sovereign wealth fund, the world’s biggest, will invest in more equity and fixed income markets as it seeks to boost returns, it said on Tuesday.

The fund, which invests Norway’s vast surplus of oil money and is among the world’s largest investors, will also take direct charge of some future real estate investments.

The changes, which will continue a shift in policy since 2011, will be made before 2016.

“New frontier markets will be added to our equity investments and the scope of our fixed-income investments will be widened to include additional currencies,” the fund said in a statement on Tuesday.

The fund, worth about $173,000 for every man, woman and child in Norway, invests in more than 8,000 firms and across 82 countries. It owns 1.3 percent of the world’s listed companies, including 2.5 percent of European ones.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza