Norway’s wealth fund may boost US stock investments

Investment spree in American stocks, including  Microsoft, Apple and Amazon.com

Norway’s huge sovereign wealth fund, the world’s largest, proposed overhauling its global holdings, calling for a shift away from Europe in a move that would allow it to boost its US stock investments by as much $100 billion (Dh367.25bn) and take a larger chunk of the biggest technology companies.

In a letter sent to the finance ministry released on Tuesday, the $1 trillion fund recommended that its investments “be adjusted further towards float-adjusted market weights by increasing the weight of equities in North America and reducing the weight of equities in European developed markets”.

The response comes after the ministry last year asked the fund to review the geographical weighting that had been in place since 2012. The ministry on Tuesday said it would present its response in the “spring of 2020” and that any changes would be implemented gradually.

The fund is overweight Europe to better match Norway’s trade flows, but this has been questioned since it has missed out on the bigger returns in US markets. A change could set off an investment spree in US stocks, including in technology giants such as Microsoft, Apple and Amazon.com, which are already the fund’s largest holdings.

https://www.thenational.ae/

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