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The standout to me is the management by Norway versus the waste of the Mid East SWF. The wasted opalescence of Dubai says it best. The Saudi Prince and his new direction when it happens is a change but as we see with the pulling of the Aramco IPO it is a ways off.
When I seen the article title the first thing I thought of was, what do they invest in?
thank you for providing the link to it
[quote=”Assistanc3″ post=1718]When I seen the article title the first thing I thought of was, what do they invest in?
thank you for providing the link to it[/quote]
Agree was very informative with the equities, bonds and real estate and with the foreign exchange management also. They are investors not gamblers something we need to learn here.
I remember when all of wall street were criticizing Norway after the GFC – typically they were wrong and ignorant, where are the compliments now? A great example of a plan and recognition of changing trends.
This reminds me of the Ontario Teachers Pension Plan
It was known as the Teachers Puppet Plan because when they owned the Toronto Maple Leafs of the NHL, not only was it (and still is) the most valuable hockey team, they never put a Stanley Cup contending team on the ice. Instead of going out and getting a high caliber free agent, the Pension Plan saved that money for returns.
The pension plan reported a preliminary $11.5 billion funding surplus as of Jan. 1, 2017.
[quote=”ClemSnide” post=1881]I remember when all of wall street were criticizing Norway after the GFC – typically they were wrong and ignorant, where are the compliments now? A great example of a plan and recognition of changing trends.[/quote]
Good points Clem and A3 – I like the fact Norway seems ahead of the curve and planning for a future after oil. I would have the thought the Leafs would have snagged one Cup for them – now that would have been great for returns!
not to get to far off topic but the Canada Pension Plan (CPP) has also done well for itself
investments in stuff like Nintendo, Rolls Royce and MasterCard
CPPIB, as part of a consortium, first invested US$300 million in Skype in September 2009. In May 2011 CPPIB sold its stake in Skype to Microsoft for US$1.1 Bn before debt repayment.
As of March 2017, the CPP has CAD$316.7 Billion Net Asset Value
Tks A3 good to see another well run investment vehicle for the people – Skype was an excellent play. Nintendo interesting one, Pokémon popular in Canada now I bet 🙂
Norway ‘oil fund’ Wants to Sell it’s Petroleum Stocks.
The Sovereign fund was set up to hedge Norway from the depletion of it’s oil reserves and falling energy prices or both. Norway relies on oil and gas for about a fifth of economic output.
“Our perspective here is to spread the risks for the state’s wealth,” Egil Matsen, the deputy central bank governor overseeing the fund, said in an interview in Oslo. “We can do that better by not adding oil-price risk.”
The oil divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its coal stocks.
The fund controls about 1.5 percent of global stocks including as much as $40 billion of shares in international giants such as Exxon Mobil Corp. and Royal Dutch Shell Plc. The Finance Ministry said it will study the proposal and decide what to do in “fall of 2018” at the earliest.
While the fund says the plan isn’t based on any particular view about the future of oil prices or the industry as a whole, it will likely add to pressure on producers already struggling with the growth of renewable energy supplies.
The Stoxx Europe 600 Oil and Gas index reversed gains after the announcement, sliding 0.3 percent as of 3:47 p.m. in London said Bloomberg
The fund’s investment decisions are guided by ethical rules encompassing human rights, some weapons production, the environment and tobacco. Norway’s fossil-fuel investments are coming under increasing scrutiny from a public that aims to be a climate leader without jeopardizing one of the world’s highest standards of living.
The government was forced to withdrew cash from the fund for the first time last year to meet spending commitments after oil prices dropped.
The fund said it doesn’t expect returns or market risk to be affected “appreciably” by its proposal, emphasizing that cutting exposure to the energy industry would allow it to crank up investments in other sectors. Finance Minister Siv Jensen said the government will give the plan careful thought.
“This must be thoroughly assessed, I am not prepared to conclude in advance,” said Nikolai Astrup, leader of the finance committee representing the ruling Conservatives. “It’s important that the fund is managed in a way that’s predictable and long-term.”
Matsen said “now is a good time” for the proposal because otherwise the new 70 percent threshold will result in the fund buying even more oil and gas shares because it tracks indexes that include such stocks. The fund has a small amount of leeway to make individual investments and wants to keep oil and gas in its “investment universe,” he said.
But environmental groups praised the plan. “The world is changing fast, and it’s very risky to put too many eggs in the same basket,” said Marius Holm, the leader of the
Zero Emission Resource Organisation. Sony Kapoor, a former adviser to Norway’s government, said the plan is “a belated victory for common sense over the powerful oil and gas lobby in Norway,” calling on the fund to now boosts its “green” investments at least tenfold.The recommendation also received backing from the Conservative-led government’s support parties, the Christian Democrats and Liberals. The Labor Party, the biggest opposition group, said it would like to study the proposal before making a decision.
“The government is responsible for the Norwegian economy as a whole and must take a broad and comprehensive approach to this issue,” Jensen said in a statement.
Norway’s $1 Trillion Wealth Fund Steps Up `No’ Votes on CEO Pay
Since releasing a position paper in April, the world’s biggest wealth fund has increased the number of votes against management compensation proposals in the companies it invests in, Carine Smith Ihenacho, its global head of ownership strategies, said in an interview in Oslo.
It has this year voted against pay plans at Alphabet Inc., Google’s holding company, offshore driller Noble Corp. and media company Liberty Global Plc, among others. The fund was unable to provide aggregated statistics on its publicly available votes, but plans to do so in connection with its annual report on responsible investment, due in February.
Built on the country’s petroleum income over the past 20 years, Norway’s wealth fund has more than doubled in size since 2012 and crossed the $1 trillion mark earlier this year. It owns about 1.5 percent of all listed stocks in the world and invests in almost 9,000 companies, having opted to hold equities, bonds and real estate abroad to avoid spurring inflation in Norway.
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