Norway SWF return boosted by equity rally

Norwegian villageThe Norwegian Sovereign Wealth Fund experienced its lowest year of returns last year since 2011 – though still managed to deliver a positive result of 2.68% due to an equity rally in the final quarter. Collapsing oil prices, emerging markets and negative interest rates weighed heavily on the performance of the fund, which is managed by Norges Bank Investment Management. Emerging markets reduced the fund’s value by 7%, according to figures from the fund. Brazilian holdings alone fell by 38.2%. In 2014 the fund returned 7.6%, while in 2012 and 2013 it saw double-digit growth rates. The positive return last year was down to real estate, equity and fixed-income investments. These asset classes returned 10%, 3.8% and 0.3% respectively. The krone’s weakening against most major currencies over the year also increased the fund’s value, by 668 billion kroner (€71.5 billion). The Norwegian government invested an additional 42 billion kroner into the fund. Overall, the fund had a market value of 7,475 billion kroner, or €800 billion, on December 31, 2015, of which 61.2% was invested in equities, 35.7% in fixed income and 3.1% in real estate. ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.