$1.7 Trillion: How Norway Built the World's Largest Sovereign Wealth Fund - With Nicolai Tangen

In this feature, we hear from Nicolai Tangen, CEO of Norges Bank Investment Management, who administer's the country's sovereign wealth fund (formally called Government Pension Fund Global, or GPFG).

Established in 1996, the fund was created to invest the surplus revenues from Norway's oil and gas sector, ensuring that the country's wealth benefits future generations as well as the current population.

Oil was discovered the day before Christmas Eve in 1969, after four years of drilling. The Ekofisk field was revealed to be one of the largest in the world, and the find transformed the country's economy and society.

The fund was established by a law in 1990. It gave the government room for manoeuvre in fiscal policy should oil prices drop, or the mainland economy contract. It also served as a tool to manage the financial challenges of an ageing population and an expected drop in petroleum revenue. The fund was designed to be invested for the long term, but in a way that made it possible to draw on when required.

Today, the GPFG is globally diversified, investing in a broad range of assets, including equities (stocks), fixed income (bonds), real estate, and renewable energy projects.

It owns shares in over 9,000 companies across 70 countries, representing about 1.5% of the world's listed companies.

Norway’s fund is known for its ethical investment guidelines. It excludes companies involved in severe environmental damage, human rights violations, and certain other unethical activities.

Find out more in the full interview here:    • $1.3 Trillion - Norway's Sovereign We...  

TOPICS:
00:00:00 - The History of the Fund
00:01:24 - The Mission Going Forward
00:02:20 - Using Risk Productively

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