Norway say oil fund should invest in equities rather than bonds

The Janice FPU in Norway
The Janice FPU in Norway

Norway’s $900billion oil and gas ‘insurance policy’ should move its investments into equities and away from bonds to avoid low-interest rates, the government claim.

The Scandinavian nation has built the sovereign wealth fund up to the world’s largest on the back of oil revenues.

The cash pot is seen as an economic support mechanism for when hydrocarbon reserves eventually run out.

The government announced the move to equities as it also announced a major shift in policy, cutting the amount of the fund it can spend annually from four to three per cent.

The fund has moved away from European investments in recent years and has focused instead in real estate ventures in the US and Far East.

At present the fund’s overseas investments are limited to 60 per cent stocks, 35 per cent bonds and five per cent real estate.