How did the densely populated Norway collected 1.8 trillion dollars

The fund was launched in the early 1990s to invest in the bonds, the fund grew to become the largest of its kind by obtaining small shares in the thousands Companies all over the world.

With $ 1.8 trillion of assets, the fund is now generating a much larger income for the 5.6 million oil and gas production. There are increasing concerns that the economy has become dependent on the box so that local industries have become less innovative and dynamic as a result.

There was also criticism of the fund’s negative approach to investing the nation’s wealth, leaving it with some tools to adapt to the decline and flow of global capital. This was confirmed in April when I was informed The largest loss in six quarters Amid the turmoil in the market launched by US President Donald Trump threatened tariffs.

What distinguishes the sovereign wealth fund in Norway?

The fund stands regardless of many of its peers due to the strict investment rules.

First, you should always invest outside Norway – a base designed to avoid the danger of “Dutch disease”, as resource wealth can end with the local economy by amplifying the local currency and making it difficult for other national industries to compete.

While wealth funds in many other countries are partially working to stimulate local industries or invest in a strategic manner to enhance the soft power in the country abroad, NBIM has a limited field of active investment. The stock part of the box, which constitutes 70 % of the total, carries stakes in 8,700 companies listed in 44 countries that include FTSE Global All Cap. As a result, you now have about 1.5 % of the shares listed all over the world. The fixed part of the income of the box tracks the Bloomberg Barclays indexes, with 70 % allocating to government bonds and 30 % for companies for companies.

Other wealth boxes are more free to set their priorities and how to achieve them. The Investment Authority in Abu Dhabi is increasingly focused Private property rights And data -based investment, while Mubadala Investment Co. plays. A major role in diversifying the emirate’s economy through risks in Healthcare and financing. The General Investment Fund in the Kingdom of Saudi Arabia is leading the transformation plan in the Kingdom 2030, with major stakes on mining, games and technology. GIC PTE in Singapore intensifies and takes over the United States More risks in private markets.

What are the origins of the wealth fund in Norway?

Norway discovered large reserves of oil and gas in the North Sea in 1969, and today it is the largest producer of fossil fuel in Western Europe. Occupied to avoid instability, corruption, and weak economic growth in other resource -rich economies, the government imposed severe taxes on the energy sector and set strong regulatory controls on the industry. In 1990, after years of political debate, the Norwegian parliament established the Petroleum Fund to ensure that oil revenues benefit from current and future generations. The first capital transfer was made to the fund in 1996. With its investments spread all over the world, it gradually turned into the national system of national pensions explicitly, and its name was changed to the government pension fund in 2006.

How did the wealth box in Norway become great?

Early, the fund was creative in cash from oil taxes, licensing and profit fees from the government energy company. Initially, it is limited to investing in the bonds, its mandate expanded over time. Today, he is the largest one in the world for the listed shares.

The government cannot seize what it wants from the fund. More than 3 % of its value can not be converted annually to the national budget, a base aimed at maintaining wealth for future generations. The rest is kept for new investments.

When comparing its investment returns with other sovereign wealth funds, the Norwegian Fund achieved a relatively medium performance over the five years until 2023, as it returned by 7.45 %, according to Global SWF research consultations. This is less than Abu Dhabi Fund Mubdala, by 10.1 %, China Investment Corporation, by 8.6 %, but higher than 4.5 % revenue for Temasek in Singapore and 5.2 % for the Korean Investment Corporation.

How did the state of the Norwegian Fund evolve?

The fund increased its investments in stocks over time and added the infrastructure of real estate and renewable energy. He also emphasized the sustainability and responsible investment, with the increasing focus on environmental and social factors and governance – an approach that has not changed in response to the reaction of the Trump administration in the United States against “capital waking”.

What are the principles of moral investment of the Norwegian Fund?

Since 2004, the fund has been working under moral guidelines determined by the Ministry of Finance and approval by Parliament. The Independent Ethics Council oversees the instructions, which prohibit investments in companies participating in “serious corruption” or serious human rights and workers’ rights, or that contribute to severe environmental damage. It also excludes companies that produce certain weapons, such as nuclear weapons and cluster bombs.

About 67 companies of the fund were dropped by the end of 2024 due to their behavior. This Indian company included Adani ports, for its work with the armed forces in Myanmar and the Bezeq Telecom Company, for its activities in Israeli settlements in the West Bank, which are illegal under international law. 104 other companies have been removed from the fund due to what they sell: the fund’s investment guidelines prohibit hemp, tobacco and coal. It also avoids the companies responsible for “unacceptable greenhouse gas emissions” – although the box itself is full of income from selling fossil fuels.

Will the Norwegian wealth fund change the mandate of investment?

NBIM reported a 0.6 % loss on its investments – equivalent to $ 40 billion – in the first three months of 2025. The market has been deeply deepened in response to the preparation of President Trump, which has sparked a discussion in Norway how to protect the fund from the unexpected economic climate. About 40 % of the stock property of the fund is present in the United States, and some Norwegian politicians say it must turn more investments into Europe, so they are less exposed to volatile American markets. American bonds formed 9 % of the Fund’s property at the end of 2024. The Norwegian Secretary of Finance, former NATO Jeans Stoltenberg, said that the fund is still committed to its long -term strategy while “continuing to assess risk management options.”

The conservative opposition in Norway suggested reviewing the fund’s instructions to allow it to purchase shares in companies that make nuclear weapons. The current restriction is prohibited from investing in most of the European weapons industry, which is in line with profit as governments are proceeding with the largest reinforcing since the Cold War in response to Russia’s war in Ukraine.

Norway currently provides about 30 % of gas in Europe, and some politicians have called for more monetary transfers from the fund to support the government in Kiev, on the pretext that the Norway oil and gas industry made huge profits from the European energy crisis that followed Russia’s 2022 invasion of Ukraine.

The leadership of the fund has repeatedly argued about the addition of private shares to its investments, an invitation rejected by the Ministry of Finance, with high fees for the sector and the relative lack of transparency. The discussion continues.

What do Norway do with the profits of the wealth fund available?

Some of them go to support the extensive social welfare system in Norway, which provides free education, healthcare, supported child care and generous pathological leave. Norway ranks third in the United Nations Global Human Development Index, after Iceland and Switzerland. In 2024, transfers from the fund constituted approximately 20-25 % of the national budget. The government proposed to transfer 50 billion kronor ($ 4.85 billion) from the fund to support the government Ukraine.

What is the effect of the fund on Norway and the world?

The fund was a financial insulator that enabled the country to fluctuate in oil and economy prices and maintain the country’s financial stability.

The Fund has strengthened the soft power of Norway by enhancing sustainable commercial practices worldwide. In June 2024, its directors Vote Tesla Inc. high compensation package From Tesla Inc. It is $ 56 billion, which has increased the value since then was stabbed in court. The fund issues its voting intentions five days before the annual meetings of the companies in which it invests, and the recommendations of the Board of Directors are opposed to 5 % of the shareholders ’votes in 2024.

However, there is a discussion on how Norway depends on the funds resulting from the box. Critics say it makes political leaders in the country satisfied with the population and the least productivity of its population. They refer to data that shows national productivity worse for other wealthy countries in the past two decades. The government spends increasing sums to support the pathological leave of workers, and students test stores were in a declining direction.