The Oil fund worth more than NOK 8,000 billion

Siv JensenMinister of Finance Siv Jensen (Progress Party).Photo : Lise Åserud / NTB scanpix

Oil fund has never been bigger

Both the fiscal politicians in the Parliament, Minister of Finance Siv Jensen (Progress Party) and the Norwegian people can enjoy the fact that the Norwegian Pension Fund Abroad, a.k.a the Oil Fund, has never been bigger.

 

– Last week, the fund passed NOK 8,000 billion after a very good start to the year, Chief Executive Officer Yngve Slyngstad, said in the annual speech on the Management of the fund in the Parliament’s Financial Committee on Tuesday.

Siv Jensen had no great news to come up with in her statement.

It became apparent in March that the Government says no to let the fund invest in unlisted infrastructure such as wind turbines, solar energy, hospitals, prisons or roads.

– I would warn against putting other leads than financial on the fund, the Minister of Finance, said. She believes the fund is not well-suited to bear the political, reputational and regulatory risk associated with such investments.

However, she did not close the door completely.

– We might open up for it later, the Minister of Finance explained.

The Government also recommends increasing the equity stake in the fund’s investments to 70 percent, in the hope of higher returns with a very low interest rate.

Jensen also emphasized that the Government’s expectation of return from the Government’s Global Pension Fund (SPU), aka the oil fund, is now 3 percent, compared with 4 percent previously.

– This is long-term funding. The return may be significantly higher or significantly lower in some years.

The Government Pension Fund Norway also participated at the hearing.

 

Source: NTB scanpix / Norway Today

 

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