Re-Define has launched a major new report on the Norwegian Sovereign Wealth Fund, the largest in the world. The report can be found here and the press release here
I still remember that feeling of surprise when I first looked at Norway's Sovereign Wealth Fund (GPF), now the world's largest, in 2007. Having worked both in the financial industry and in public policy, I was struck by three observations in particular. They still make me uneasy.
The first was how the portfolio, in 2007, was comprised almost entirely of investments in liquid securities in the developed world. These still constitute more than 90% of the GPF. The second was how some of the largest investments of the GPF were in oil companies. Even today, three of the ten largest equity holdings of the GPF today are in oil majors and as much as 10%-15% of the overall portfolio is heavily exposed to oil, gas or coal. The third was the laid-back approach the GPF took to engaging on matters of governance, policy and ethical guidelines, which has not changed.