The Norwegian investment fund

The government began salting away its oil proceeds in a special reserve in 1996.  Known until last year as the Petroleum Fund, it was renamed the Pension Fund, which is supposed to make Norwegians aware that the fund’s purpose is to provide for future generations.

With the spike in oil prices, it has become the biggest public fund in Europe.  At the rate it is growing, experts say it will be worth $800 billion to $900 billion in a decade.  That translates into $180,000 for every man, woman and child in Norway.

“Inevitably, Norwegians feel bad about having all this money,” said Gro Nystuen, a human rights lawyer who is chairman of an ethics council that screens investments.  “Our job is to make the Norwegian people feel less guilty.”

The Norwegians won’t invest in Wal-Mart, but they will invest in Saudi Arabia.  And get this:

Blacklisting companies that worsen climate change, she said, would put Norway in an awkward spot as its national fortune rests on fossil fuels.

Here is the full story.


Ah -- but what about investments in gaming...?

Pension fund stakes in gambling spark outcry
April 20, 2007

Norway's huge public pension fund, fueled by oil revenues, is supposed to be governed by strict ethical guidelines. Now some Norwegians are crying foul after learning that the fund has invested in the gambling industry, which is illegal at home.... [Except, of course, for the State-run lottery.... ;-) ]

I've often been curious as to why governments don't take advantage of the arbitrage opportunities available to them. They are able to borrow very cheaply so surely they could engage in a 'carry trade' from gilts/t-bills to securities? As they ought to be able to hold for the long term and should be able to diversify it seems like a no-brainer. Does anyone know why they don't.

What will happen to Norway when alternative fuels and green technology become more in demand and thus making the need for oil less?


What would happen to Norway, if there is a mass movement of immigrants to become citizens to get a piece of the action?

No, they should open their borders to all and sundry. After all, what ill could possibly come of that?

seymour, increased demand for green technologies probably won't hurt Norway all that much, since world oil supplies are also being depleted, and viable alternatives are few and expensive anyway.

A more important point is the north sea production. It's in steep decline, it peaked around 1999/2000, but I doubt one norwegian in a hundred knows that. Actually, I doubt very many of our elected representatives know that...

The movement of immigrats to become the citizens of some other area is
not a good idea at all i guess!!

are these good investment fund, just wondering

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