Norway still won’t let its $1-trillion wealth fund invest in private equity
Oslo — Norway’s government again declined to allow its $1-trillion wealth fund to invest in private equity, saying it would pose a challenge to its transparency and cost level. "The management of our common savings is good," finance minister Siv Jensen said in Oslo on Tuesday. "It’s transparent, responsible, long term and cost-effective." The government went against both the wishes of the fund and the recommendation of a government-appointed expert group. The fund, which last year was allowed to raise the portion it invests in listed stocks to 70%, has been looking to add new asset classes to spread risk and generate higher returns in an age of record low interest rates. While the fund’s value has soared in the decade since the global financial crisis, it’s coming to a crossroads as inflows from petroleum production have dried up and its managers warn that returns can’t be expected to keep up the same pace in the years ahead. Sony Kapoor, MD of Re-Define, said parliament should act ...
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