Trump Rally Helps Norway Wealth Fund Score $53 Billion
After a volatile beginning for many large asset owners in 2016, the election of a pro-business politician in the United States has positively impacted global equity markets, lifting annual returns for many institutional investors exposed to public equities.Norway’s Government Pension Fund Global (GPFG) benefited from the Donald Trump rally, posting a 6.92% return for calendar year 2016. GPFG took home 447 billion NOK (US$ 53 billion) in 2016. Post-election, U.S. stocks have shot upwards hoping for deregulation and major tax reform in a Republican-dominated U.S. government. The European wealth fund had 37.4% of its listed equity investments in the United States, generating a 15.5% U.S. equity return in international currency for 2016, beating out Australia, France, Sweden, United Kingdom, Germany and China. Overall, listed equities were a driver for positive returns, posting 8.72% for the year. Key contributors for GPFG in equities were Royal Dutch Shell Plc, Glencore Plc and U.S. technology mammoth Apple Inc.
The wealth fund decreased exposure to Europe from 38.1% in 2015 to 36% in 2016, while increasing allocation to North America to 42.3% from 40%. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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