Norway’s Massive Sovereign Wealth Fund to Exit Russian Holdings (2024)

FAQs

What are the results of the Norwegian Sovereign Wealth Fund? ›

The fund has generated an annual return of 5.70 percent between 1 January 1998 and the end of 2022. The net annual real return on the fund is 3.50 percent.

The $1.3 trillion fund was established in the 1990s to invest the surplus revenues of Norway's oil and gas sector. To date, the fund has invested in more than 9,300 companies in 70 countries around the world. Norway's vast North Sea oil and gas reserves are the bedrock of the fund's wealth.

The fund pools the Norwegian state's revenues from oil and gas production and invests them abroad in stocks, bonds, property and renewable energy projects. Managed by a unit of the central bank, it is invested in more than 9,200 companies globally and owns on average 1.5% of all the world's listed stocks.

Some countries may have more than one SWF. Also, while the United States does not have a federal sovereign wealth fund, several of its states have their own SWFs.

It has over US$1.19 trillion in assets, and holds 1.4% of all of the world's listed companies, making it among the world's largest sovereign wealth funds. In December 2021, it was worth about $250,000 per Norwegian citizen.

OSLO, Jan 26 (Reuters) - Norway's estimated tax revenue from the oil and gas industry rose by 200% last year to a record 884 billion Norwegian crowns ($89.3 billion), almost three times the previous record, the Norwegian Tax Administration said on Thursday.

Norway had a government debt before oil was discovered in the North Sea. Some of that debt is still live because government issue some bonds with very long maturity periods. The Kingdom of Norway still had debts left over from fighting the Second World War when oil revenues started to flow in the 1970s.

There are many countries with large oil exports, but little or no money saved up. So how come Norway has been able to save up such a large amount? And how come we found all this oil in the first place? Now many would say that the number one reason for Norway's wealth is the Oil.

The good news: everyone in Norway became a theoretical millionaire in a milestone for the world's biggest sovereign wealth fund that has ballooned thanks to high oil and gas prices.

What is the biggest fund in the world? ›

What Is a Sovereign Wealth Fund (SWF)? A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country's surplus reserves. SWFs provide a benefit for a country's economy and its citizens. The funding for a SWF can come from a variety of sources.

China Investment Corporation (CIC; Chinese: 中国投资有限责任公司; pinyin: zhōngguó tóuzī yǒuxiàn zérèn gōngsī) is a sovereign wealth fund that manages part of the People's Republic of China's foreign exchange reserves.

The world's largest sovereign wealth fund (SWF) as of December 2022 was China Investment Corporation (CIC), managing assets reaching around 1.35 trillion U.S. dollars. The CIC is used to manage a portion of China's foreign currency reserves and established in 2007.

Key information about Norway External Debt

The data reached an all-time high of 767.3 USD bn in Dec 2022 and a record low of 204.9 USD bn in Mar 2003.

Norway Imports from Russia of Crude Oil was US$26.38 Million during 2021, according to the United Nations COMTRADE database on international trade. Norway Imports from Russia of Crude Oil - data, historical chart and statistics - was last updated on May of 2023.

Oil Reserves in Norway

Norway has proven reserves equivalent to 69.0 times its annual consumption. This means that, without Net Exports, there would be about 69 years of oil left (at current consumption levels and excluding unproven reserves).

Who buys Norway's oil? ›

United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%. The United States' government's spending exceeds its income most years, and the US has not had a budget surplus since 2001.

In fact, the United States' top personal income tax rate is higher than Norway's top rate, at 43.7 percent (federal and state combined).

Norway's top marginal tax rate of 39 percent applies to all income over 1.6 times the average Norwegian income. Compare this to The United States. The top marginal tax rate of 46.8 percent (state average and federal combined rates) kicks in at 8.5 times the average U.S. income (around $400,000).

Norway has a great life expectancy (82 years on average), thanks to the active Norwegian lifestyle, the diet that's full of Omega−3 fatty acids (all that salmon is definitely good for you) and of course, a robust healthcare system that's funded by the public.

What is average wage in Norway? Average Wages in Norway decreased to 50550 NOK/Month (4643.668 USD/Month) in the third quarter of 2022. The maximum rate of average wage for employees was 49920 NOK/Month and minimum was 20126 NOK/Month.

Because Norway does not have a minimum wage, there is no mandatory minimum rate of pay for workers in Norway.

The United States has a lower per capita GDP than Norway with a GDP of 51,749 compared to 99,558, respectively, and is also home to one of the most pressing income distribution gaps in any industrialized nation, surpassed in income inequality by only Russia and Mexico.

Where do rich Norwegians live? ›

The west is where established Norwegian families, the wealthy and most expats live, especially diplomats. Neighbourhoods in the west include Marienlyst, Majorstuen, Frogner, Bygdøy, Torshov, Ullevål-Hageby, Sankt Hanshaugen, Vinderen and Kjelsås.

As it stands, Norway has 11 percent of the population under low-income level. In comparison to the other European Union countries, the household poverty threshold is higher in Norway. In Norway, elderly people have a higher low-income risk than comparative age groups, compared to other European countries.

San Manuel Sovereign Fund (San Manuel) is a sovereign wealth fund based in Highland, California. Established in 1891, the fund is a federally recognized American Indian tribe.

Largest Hedge Funds Research Summary

The largest hedge fund in the U.S. is Bridgewater Associates, with an AUM of $126.4 billion. As of 2022, the U.S. hedge funds have a market size of $111.3 billion. There are at least 3,841 Hedge Funds in the U.S.

Germany already possesses a sovereign wealth fund, the Nuclear Waste Management Fund (KENFO) which is a US$22 billion fund created in 2017 to manage the funding of the interim and final storage of radioactive waste. KENFO ranks 43rd in Global SWF's ranking of sovereign wealth funds.

While there are twenty-one domestic sovereign wealth funds, only twenty states have a domestic sovereign wealth fund as Texas has two.

Sovereign Wealth Funds (SWFs) are pools of assets owned and managed directly or indirectly by governments to achieve national objectives. These funds have raised concerns about: i) financial stability; ii) corporate governance and iii) political interference and protectionism.

Compared to other government shareholding types, we also find that SWF ownerships present higher risk to bondholders and result in higher increase in the target firm's cost of debt. Furthermore, this SWF bond risk premium is larger during non-crisis periods and for SWFs originating from autarchic countries.

At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China.

Does the Chinese government own US debt? ›

Japan and China have been the largest foreign holders of US debt for the last two decades. Japan and China held almost 50% of all foreign-owned US debt between 2004 and 2006. However, this has declined over time, and as of 2022 they controlled approximately 25% of foreign-owned debt.

Overall, foreign countries each make up a relatively small proportion of U.S. debt-holders. Although China's holdings have represented just under 20 percent of foreign-owned U.S. debt in the past several years, this percentage only comprises between 5 and 7 percent of total U.S. debt.

AFIFX is often the most aggressive of the American funds, yet it's still slightly less volatile than the S&P 500. The fund has topped the index by an average of 76 basis points (a basis point is one one-hundredth of a percent) per year over the past 15 years.

Who is the richest man in the world? As of May 1, 2023, the richest man in the world is Bernard Arnault, the CEO and chairman of LVMH of France; he's worth nearly $237 billion. He moved into the number one spot after Elon Musk's fortune fell in late 2022 as shares of electric carmaker Tesla fell.

The U.S. stock market has long been considered the source of the greatest returns for investors, outperforming all other types of investments including financial securities, real estate, commodities, and art collectibles over the past century.

Some countries may have more than one SWF. Also, while the United States does not have a federal sovereign wealth fund, several of its states have their own SWFs.

top 10% of adults hold 85%, while the bottom 90% hold the remaining 15% of the world's total wealth, top 30% of adults hold 97% of the total wealth.

The richest person ever is thought to have been an emperor with an accumulation of wealth often described as “unimaginable” or “incalculable.” The title goes to 14th-century African emperor Mansa Musa, and his wealth has been estimated to be the modern day equivalent of $400 billion.

The fund was set up to shield the economy from ups and downs in oil revenue. It also serves as a financial reserve and as a long-term savings plan so that both current and future generations of Norway get to benefit from our oil wealth. In 1969, one of the world's largest offshore oilfields was discovered off Norway.

Norway's sovereign wealth fund, the world's single largest investor, has warned company directors it will vote against their re-election to the board if they do not up their game on tackling the climate crisis, human rights abuses and boardroom diversity.

What is the world's largest sovereign wealth fund? ›

The world's largest sovereign wealth fund (SWF) as of December 2022 was China Investment Corporation (CIC), managing assets reaching around 1.35 trillion U.S. dollars. The CIC is used to manage a portion of China's foreign currency reserves and established in 2007.

In 2022, Norway produced 232 million Sm³ of marketable oil equivalents (Sm³ o.e.), which is a slight increase compared with the production of 230.9 million Sm³ in 2021. By comparison, total production in the record year of 2004 was 264.2 million Sm³ o.e. Oil production in 2022 was somewhat lower than in 2021.

Norway had a government debt before oil was discovered in the North Sea. Some of that debt is still live because government issue some bonds with very long maturity periods. The Kingdom of Norway still had debts left over from fighting the Second World War when oil revenues started to flow in the 1970s.

The United States has a lower per capita GDP than Norway with a GDP of 51,749 compared to 99,558, respectively, and is also home to one of the most pressing income distribution gaps in any industrialized nation, surpassed in income inequality by only Russia and Mexico.

Oil, gas, seafood, and products from energy-intensive industry are among our main export commodities. Our sea areas are six times the size of our land area, and our ocean-based industries account for almost 40 % of our total value creation, and 70 % of our exports.

Norges Bank Investment Management manages the Norwegian Government Pension Fund Global, often referred to as the Norwegian oil fund. We manage assets worth more than 13,000 billion kroner, or about 1,3 trillion dollars.

SWF money can come from a few different places, including government payments; trade surpluses; exports of natural resources; foreign currency operations; or privatizations funds. SWFs tend to have a higher risk tolerance because they prefer returns over liquidity.

Norway has replaced Russia as the biggest gas supplier of Europe, said the EU Commissioner Kadri Simson, as she was addressing a committee meeting and a press conference in the European Parliament. “Since September 2022, Russian gas is about 8 percent of all pipeline gas imported in the EU.

Norway is an important supplier of oil and gas to the global market, and almost all oil and gas produced on the Norwegian shelf is exported. About 95 per cent of Norwegian gas production is exported via pipelines directly to the EU and UK.