Benchmark contracts head for weekly gains as recession fears ease
The fun and games in this innovative and rapidly changing sector will be well worth watching
Upgrade of outdated tobacco law on the way at last
The premier announced her cabinet after a meeting with the ANC’s deployment committee and its alliance partners
In a brief statement the telecom group says it has noted the interest by peer Rain in a tie-up, but no formal offer has been made
Credit bureau sees more defaults ahead as central bank increases interest rates
The improved sentiment is a result of increased merchandise export and import volumes and more new vehicles sold, Sacci report says
The monetary policy committee increases the key policy rate to 6% from 5%
Top swimmers have a rivalry that could develop into one of SA sport’s greatestt
Former world boxing champion furious over unauthorised production
Oslo — Norway’s sovereign wealth fund has sold its entire portfolio of companies focused on oil exploration and production, marking a major step away from fossil fuels for the investing giant.
The portfolio, worth about $6bn in 2019, was fully exited by the end of last year, Trond Grande, the fund’s deputy CEO, said by phone on Thursday. The move completes a years-long process to reduce the giant investor’s exposure to a sector that has defined Norway’s economy for the better part of half a century.
Grande spoke after the fund revealed an about $10bn loss on oil and gas holdings in 2020 that had been valued at more than $40bn at the start of the year. Overall, 2020 was one of the fund’s best years ever, with the total portfolio generating $123bn in returns, buoyed in particular by its holdings of tech stocks.
Norway’s wealth fund, the world’s biggest, started turning its back on oil and gas more than three years ago. The intention back then was to diversify away from an industry to which Norway’s economy was heavily exposed, with a view to addressing a key financial risk. But the fund’s new CEO, Nicolai Tangen, has also made sustainable investing an explicit focus of his strategy, and says all portfolio managers who work for the fund need to operate with that in mind.
Tangen has assigned about 10 asset managers to hunt down investment opportunities in renewable infrastructure. The fund, which the CEO says has yet to invest a single cent in the area, wants the portfolio to eventually reach about 1% of the total $1.3-trillion fund. Tangen has already admitted that might prove hard, with demand for renewable infrastructure assets driving up prices.
“We’re working relentlessly to get something under our belts here, and we hope that will happen this year,” he said in an interview. “We’re looking for wind and sun projects in Europe and America.”
Back in October, Tangen said “there’s a lot of competition” for the kind of projects the fund would be interested in buying.
Would you like to comment on this article? Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.