Norway’s Oil Fund chief: The Oil Fund’s value will fall – turbulent times could last

Nicolai TangenPhoto: Terje Pedersen / NTB

There are turbulent times ahead in the global capital market, Norway’s Oil Fund chief Nicolai Tangen says. He believes it is inevitable for the fund to fall in value for a long time.

“There is a lot of risk in the capital market. Inflation is rising, and interest rates are rising. This is negative for both interest rates and equities. I think we could have turbulent times ahead. Then, the value of the fund will go down. This can also last quite a long time,” Tangen told E24.

The Government Pension Fund Global, best known as the Oil Fund, has risen considerably in value in recent years. As of today, the value is over NOK 11.6 trillion.

However, a fall in value in the time ahead is inevitable, Tangen believes.

Riding the wave

“I do not think there is anything to do about it. We just have to deal with this. As a portfolio manager, you adapt to the world. We have to ride the wave,” Tangen said.

Although he is worried that the value of the Oil Fund will go down, he also emphasizes that this is part of the job of managing the fund. 

And he believes that most people understand that the economy can fluctuate.

“What impresses me about Norwegians is their understanding that things go up and down. This goes back a long way back in our history. We have been involved in many cyclical markets… We are tolerant of fluctuations,” he concluded.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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