NEWS

KLP and Storebrand ASA, with combined assets under management of 780 billion Norwegian kroner ($130.1 billion), have joined several environmental organizations and the Oslo Catholic Church in calling on new Prime Minister Erna Solberg to make the changes to the fund’s structure. Currently, the sovereign-wealth fund—formally called The Government Pension Fund Global—has 35.7% of its money in fixed-income investments, 63.4% in equities and less than 1% in real estate.

Having two big Norwegian asset managers back the proposal to move the fund into infrastructure and renewables could heighten pressure on Norway’s incoming government to allow the fund to consider new investment strategies in order to improve its relatively modest returns, especially amid low expectations for the global bond market.