According to the opposition bloc in Norway, the Norwegian government needed to reassess its investment plans of using US$740 billion sovereign wealth fund to secure oil-related assets. The opposition bloc wanted to find a different model that will improve the fund's returns. The statement was released ahead of the elections next month.
"The investments might be too big to be handled by just one fund," the Conservative Party leader, Erna Solberg, said in an interview with media in Oslo. "You could split it either on getting different handlers to compete better, or have different objectives for your investments in different funds. We're going to explore it, develop and see if it's a good idea."
Norway's government makes use of capital from its sovereign wealth fund to protect its national budget. The government can use up to 4% of the fund. The capital the 4% represents have been growing. The oil fund has increased in size more than four-fold since 2005. Analysts said the fund could grow about 50% more by 2020.
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