How to not spend it
It is tough for a small democracy to run the world’s biggest sovereign-wealth fund
TWO decades after Norway’s government paid a first deposit into its sovereign-wealth fund, the country is learning how to manage a behemoth. The vehicle, which is used to invest abroad the proceeds of Norway’s oil and gas sales, has amassed a bigger fortune than anyone expected, thanks to bumper oil prices. As the direct benefits of oil decline—around 46% of Norway’s expected total haul of oil and gas is gone—the relative importance of the fund will grow. The annual revenues it generates now regularly exceed income from oil sales.
This week the “Pension Fund Global” was worth Nkr7.3 trillion ($882 billion), more than double national GDP. No sovereign-wealth fund is bigger. It owns more than 2% of all listed shares in Europe and over 1% globally. Its largest holdings are in Alphabet, Apple, Microsoft and Nestlé, among 9,000-odd firms in 78 countries.
This article appeared in the Finance & economics section of the print edition under the headline “How to not spend it”
More from Finance & economics
At long last, Europe’s economy is starting to grow
Now for the hard part
The property firm that could break China’s back
If Vanke collapses, so might confidence in the state’s management of the economy
Narendra Modi’s flagship growth scheme is off to a sluggish start
Without improvements, it risks wasting trillions of rupees