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Norway’s $1 Trillion Wealth Fund Wants More Time to Shift Stocks


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Norway’s $1 Trillion Wealth Fund Wants More Time to Shift Stocks

Business

Category: Financial / Investment

Norway’s $1 trillion wealth fund recommended it be given more time to adjust its stock portfolio should it stray away from its 70% target.

The recommendation is part of a review of the rebalancing rules after the government boosted the amount of shares it can hold from just above 60 percent. The fund also recommended tightening the band at which it can deviate from its target to 2 percentage points from 4 percentage points.

“Transaction costs and deviation from the strategic target can be reduced with the combination of a narrower no-trade band and more gradual adjustment back to the strategic target than at present,” Norges Bank Governor Oystein Olsen and Norges Bank Investment Management Chief Executive Officer Yngve Slyngstad said in a letter to the Finance Ministry.

Source: Bloomberg

Published: June 16, 2019