Norway’s SWF Dumps More Euro Debt Amid Uncertainty in Europe

Yngve Slyngstad

Yngve Slyngstad

French Socialist Francois Hollande was elected President of France. Mr. Hollande is France’s first Socialist president in 17 years and institutional investors are concerned since he calls for less austerity. At the same time Greek votes migrated to political parties who professed an anti-bailout dogma. From a public investor standpoint European sovereign risk will be mounting in the next couple of weeks until there is some clarity in policy and goals. The looming question is the future of the Euro and the clashing of policies between Germany and France.

How does this affect sovereign wealth funds in the short-term to long-term in asset allocation decisions?

Norway’s GPFG Select European Sovereign Debt Exposure

Country Holdings in US Dollars
France 13,732,800,000
Germany 8,828,210,000
Italy 5,664,820,000
European Investment Bank 4,147,750,000
Spain 3,093,790,000
Ireland 656,213,000
Greece 260,869,000
Portugal 127,850,000
**Brazil 540,557,000

Source: Norges Bank Investment Management – May 6, 2012

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