• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 3 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 2 hours Oceans "Under Fire" Of Plastic Trash
  • 2 mins Socialists want to exorcise the O&G demon by 2030
  • 21 hours Is Natural Gas Renewable? I say yes it is.
  • 5 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 1 day Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 4 hours Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 22 hours Making Fun of EV Owners: ICE-ing Trend?
  • 21 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 13 hours Cheermongering about O&G in 2019
  • 12 hours North Sea Rocks Could Store Months Of Renewable Energy
  • 5 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day Orphan Wells

Norway’s Sovereign Wealth Fund Grew by $37 Billion in First Quarter

Norway’s $728 billion Government Pension Fund Global, the largest sovereign wealth fund in the world, grew by 219 billion kroner ($37 billion) during the first quarter of 2013, due to unprecedented stimulus from central banks trying to boost economic growth.

The fun, which generates money from taxes on oil and gas, ownership of petroleum fields, and the government’s 67% stake in Statoil ASA, experienced returns of 5.4 percent over the first three months of the year, with stocks returning 8.3 percent, and bond investments climbing 1.1 percent.

Yngve Slyngstad, the Chief Executive Officer of Norges Bank Investment Management, said that “the favorable performance reflects the strong push in equity markets, particularly in January and February. Among the major stock markets, the U.S. and Japanese markets made the largest contributions.”

Related article: Statoil Eyes “Considerable” North Sea Discovery

Policy makers in Washington and Tokyo have already injected money into the struggling economies by buying bonds, and the European Central Bank has announced a similar plan for the near future. This boost to financial systems has allowed the stock markets to rally, with the MSCI World Index building on last year’s 13.2 percent growth with a nine percent gain so far this year. The US benchmark Standard and Poor’s 500 Index has also jumped to a record during the first quarter.

The fund had its biggest year ever in 2012, refocusing its strategy to capture more global growth by moving asset allocation away from Europe and into emerging markets in Asia and South America, whose contribution to international markets is growing.

By the end of 2012 holdings in emerging market debt had increased in areas such as Mexico’s government bonds, Colombian fixed income assets, and other equities in Kuwait and Oman; all growing influences in the energy markets.

Yngve Slyngstad confirmed that he sees “an increase in investments in emerging markets and their currencies to a significant degree over the next 10 years.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News