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Norway’s SWF Posts 2.7% Return for 2015

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Yngve Slyngstad

Yngve Slyngstad

Norway’s Government Pension Fund Global (GPFG) returned 2.7%, or 334 billion NOK, in 2015. Real estate was the best performing asset class at 10%. The wealth fund’s allocation to real estate moved up to 3.1% of assets. Norway’s GPFG also opened offices for real estate in Tokyo and Singapore. Equity investments returned 3.8%, while fixed income investments posted 0.3% in returns. At year-end 2015, the fund had a market value of 7,475 billion NOK.

View Sovereign Wealth Fund Profile of Norway’s GPFG

In a press release statement, Yngve Slyngstad, CEO of Norges Bank Investment Management (NBIM) commented, “2015 was a volatile year, with negative interest rates, currency turmoil, falling oil prices and weaker growth expectations for emerging markets. We have seen fluctuations in the fund’s return from quarter to quarter, but overall a satisfying result.”

Slyngstad addressed media, commenting that Norway’s sovereign fund has not been a part of the global selloff of listed equities this quarter. Some of the wealth fund’s largest listed equity holdings at year-end December 2015 were Nestle, Apple, Roche Holding, Novartis, Alphabet (formerly Google), Microsoft, BlackRock and HSBC Holdings.

Comments on Brexit

On another note, according to a Reuters interview with Yngve Slyngstad, he mentioned if Britain left the European Union it would not be a significant risk to its investments. Slyngstad said in the interview, “We will continue to be a significant investor in the UK at about the same level as we are today and probably even increasing our investments there going forward no matter what happens.”

Norway SWF Votes Down Paris Climate Targets at Shell Shareholder Meeting

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Norges Bank Investment Management (NBIM), which oversees Norway Government Pension Fund Global, voted down a proposal put forward by some investors at Royal Dutch Shell’s annual general meeting calling on the company to set emissions targets in line with the Paris climate accords of 2015. The challenge was shot down by 94.5% of Shell shareholders at Tuesday’s proceedings. Its defeat was followed by a statement from the oil giant calling the resolution “unnecessary” in light of the firm’s plans revealed in November to halve its carbon footprint by 2050. Some investors believe Shell would be in a better position to set their own goals on addressing issues like climate change.

The US$ 1.1 trillion sovereign wealth fund – which is itself reliant on cash-streams from Norway’s hydrocarbon stores – announced last July it would be asking the banks in which it invests nearly a quarter of its equity assets to disclose how their lending contributes to greenhouse emissions, and is currently considering whether to drop its exposures in oil and gas companies constituting roughly 6% of its overall portfolio ahead of a parliamentary vote on the proposed policy change later this year.

The climate change motion was featured by 60 long-term institutional investors representing more than US$ 10 trillion in assets – including HSBC, BNP Paribas, Fidelity, Swedish buffer fund AP7, France’s ERAFP, and the United Kingdom’s National Employment Savings Trust (NEST) – in an open letter published during the week of May 16th by The Financial Times urging fossil fuel companies to “clarify how they see their future in a low-carbon world,” without going so far as to openly support its approval.

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PSP Investments Finished Deal on Equity Stakes in AEA and AELO in Portugal

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On May 11, 2018, ROADIS, which is owned by PSP Investments, finalized the purchase of equity interests in Portugal´s Auto Estradas do Atlantico (AEA) for 50% ownership and Auto Estradas do Litoral Oeste (AELO) for 60% ownership from MSF Group (Moniz da Maia, Serra & Fortunato, Empreiteiros) and Lena Group (known locally as Grupo Lena). This is ROADIS’ first investment into Portugal.

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USS Backs Rental Housing Platform Managed by PfP Capital

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The £60 billion Universities Superannuation Scheme (USS) is providing the majority of the funding toward a joint venture to invest in the U.K. private rented sector.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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