Norway sovereign wealth fund disposed 60 percent of its Saudi equities last year on the back of an internal bench review, media reports said. The fund’s internal bench review provides guidelines for its stock purchases.
Norway sovereign wealth fund sold more than two-thirds of its Saudi equities last year. The review reasons why the fund did not participate in Saudi Aramco’s IPO last year. The fund held no shares in Aramco at the end of last year, media reports said.
Its Saudi equities sale was made despite positive market returns. Until 2018, the Kingdom of Saudi Arabia was the Norwegian fund’s largest market for equity investments in the Middle East after Israel. It dropped to the sixth position last year.
Norway sovereign wealth fund, formerly known as the Government Pension Fund Global, is the world’s largest fund worth $1.1 trillion. Nearly 70.8 percent of the fund is invested in equities. Its fixed income accounts for 26.5 percent, while unlisted real estate represents another 2.7 percent, media reports said.
The fund was established after oil discoveries in the country — and was created to support the economy under oil price fluctuations. Norway is the largest energy producer and one of the largest oil exporters in the world.
Now the Norwegian fund is showing significant interest in India’s corporate bonds. Currently, its investments are worth $100 million in Adani Group and nearly $250,000 in Britannia.