mast image

Special Report

Impact investing

Sections

Petroleum Fund gets “substantial” oil price boost

NORWAY – The Norwegian central bank says higher oil futures prices have led to a “substantial” increase in the expected value of Petroleum Fund.

Norges Bank noted the impact of the “sharp” rise in oil prices since mid-2004 on the appreciation of the krone – and that high futures prices suggests spot prices are expected to be “markedly” higher in the future.

“In isolation, this has contributed to a substantial increase in the expected future value of the Petroleum Fund,” Norges Bank said in its new inflation report.

“At the same time, the price rise has generated increased interest in Norwegian equities in relation to foreign equities.”

And the bank, which runs the Petroleum Fund, added that new occupational pensions standards will increase employers’ costs.

“From 1 January 2006, the government will introduce minimum standards for occupational pensions for all employees that do not already benefit from more favourable schemes,” the central bank said.

“Our projections for wage growth are based on the assumption that the introduction of a compulsory occupational pension scheme will increase companies’ average labour costs by an estimated ½ percentage point.”

The bank has also disclosed that it would buy foreign exchange equivalent to NOK360m (€45m) per day for the Petroleum Fund in July.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<