Norway’s SWF is Heavily Exposed to U.S. Technology Companies and Banks

Posted on 03/28/2019


At December 31, 2018, Norway Government Pension Fund Global had 1,299,103,000,000 NOK (US$ 148,830,000,000) allocated to listed equities in financials, 23.7% of its equity portfolio. Of that amount 524,912,000,000 NOK was tied banks, while 266,309,000,000 NOK was tied to the insurance sector.

With regard to the technology sector, the SWF had 689,838,000,000 (US$ 79,030,500,000) dedicated to technology stocks versus 320,756,000,000 NOK (US$ 36,747,000,000) dedicated to oil & gas stocks.

According to Norges Bank Investment Management, at December 31, 2018, the financials sector for equity investments had a 23.7% weight of total equities. This sector contributed 2.9% of the absolute volatility contribution out of 11.6% for equities. Technology contributed 1.8% of the absolute volatility contribution for equities, while oil and gas contributed 0.7%.

This distills down to the returns of Norway’s GPFG are heavily influenced to the performance of the U.S. technology industry and banking sectors.

Norway Government Pension Fund Global – Top Exposures – December 31, 2018

Ranks Company Name Area Equities (Millions NOK) Bonds (Millions NOK) Total (Millions NOK) Total USD
1 Apple Inc Technology 62,740 7,176 69,916 8,009,850,000
2 Microsoft Corp Technology 64,715 1,853 66,568 7,626,290,000
3 Alphabet Inc (formerly Google) Technology 57,634 792 58,426 6,693,510,000
4 Amazon.com Inc E-Commerce 54,771 2,985 57,756 6,616,750,000
5 Nestle SA Consumer Goods 53,914 2,291 56,205 6,439,060,000
6 Royal Dutch Shell Plc Oil and Gas 51,274 1,627 52,901 6,060,540,000
7 Novartis AG Pharmaceuticals 39,494 3,505 42,999  
8 Roche Holding AG Pharmaceuticals 39,573 1,968 41,541  
9 Berkshire Hathaway Inc Financials 33,423 4,936 38,359  
10 JPMorgan & Chase Co. Financials 24,913 12,972 37,885  
11 Bank of America Corporation Financials 22,345 13,726 36,071  
12 HSBC Holdings Plc Financials 27,020 8,853 35,873  
13 Canada Mortgage and Housing Corporation     31,785 31,785  
14 Johnson & Johnson Healthcare 29,184 2,183 31,367  
15 BP Plc Oil and Gas 25,368 3,462 28,830  
16 AT&T Inc. Telecommunications 17,389 11,424 28,813  
17 Kreditanstalt fur Wiederaufbau Government-related   27,475 27,475  
18 Verizon Communications Inc Telecommunications 20,331 6,932 27,263  
19 Banco Santander SA Financials 16,839 10,341 27,180  
20 Tencent Holdings Ltd. Technology 26,340 788 27,128  
21 Facebook Inc Technology 27,059   27,059 3,099,980,000
22 TOTAL SA Oil and Gas 24,780 1,876 26,656  
23 Wells Fargo & Co Financials 16,790 8,732 25,522

Source: Norges Bank