Norway wealth fund may move US$50 billion into US stocks from Europe

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Norway's US$1.15 trillion sovereign wealth fund should shift more assets into the United States and Canada, while cutting its holdings in Europe, ...

OSLO: Norway's US$1.15 trillion sovereign wealth fund should shift more assets into the United States and Canada, while cutting its holdings in Europe, the country's minority government said on Monday.

The world's largest sovereign fund has historically given a higher weighting in its portfolio to European stock markets, focusing on countries that Norway does the most trade with, and a lower weighting to those of North America. While the fund currently owns about 1.5per cent of all stocks globally, its ownership in Europe amounts to 2.6per cent of all listed shares while its holdings in the Americas is only just over 1per cent.Despite its lower weighting, North America represented 41.6per cent of the fund's overall US$760 billion stock market holdings at end-June and would rise to 48per cent under the amended framework, while Europe would decline to 26.5per cent from 33per cent currently.

 

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