Norway's Sovereign-Wealth Fund Hits $1 Trillion Value for First Time
19 September 2017 - 7:03PM
Dow Jones News
By Dominic Chopping
The value of Norway's sovereign-wealth fund hit $1 trillion on
Tuesday, according to Norges Bank Investment Management, the arm of
the central bank that manages the fund.
"On Tuesday 19 September 2017 at 02:01 CET, the fund value hit
$1,000,000,000,000, or 1 trillion dollar, for the first time," it
said.
The fund, the world's largest, had a rapid increase in 2017
following a strengthening of the world's major currencies against
the U.S. dollar, combined with strong equity markets, the bank
said.
"Reaching 1 trillion dollars is a milestone, and the growth in
the fund's market value has been stunning," said Yngve Slyngstad,
Chief Executive of Norges Bank Investment Management.
The fund--commonly referred to as the oil fund--was established
to safeguard the country's oil and gas savings, giving the
government room for maneuver in fiscal policy should oil prices
drop or the mainland economy contract.
The fund states that one day the oil will run out, but the
return on the fund should continue to benefit the Norwegian
population.
It was also seen to serve as a tool to manage the financial
challenges of an aging population and an expected drop in petroleum
revenue. The fund was designed to be invested for the long term,
but in a way that makes it possible to draw on when required.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
September 19, 2017 04:48 ET (08:48 GMT)
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