Norway's euro 457.134 (US $610 billion) sovereign wealth fund, Europe's biggest equity investor, plans to sharply reduce its European exposure while raising investments in emerging markets and Asia-Pacific, the finance ministry said on Friday.
Of its entire bond, fixed income and real estate portfolio, European investments will be "gradually" reduced to 41 percent from 54 percent, while Asia-Pacific's share will rise to 19 percent from 11 percent, Finance Minister Sigbjoern Johnsen told a news conference. "We're reducing our European exposure because we see that economic development in the global economy is changing and this should also be reflected in our investment strategy," Johnsen said. "Most likely we'll have to sell some assets in Europe."
As a result, the share of emerging markets in the fund's total portfolio will rise to 10 percent from 6 percent and the share of the Americas and Africa will rise to 40 percent from 35 percent.
"It is just not possible to say how long this will take, it should be gradual and taking into account market circumstances," ministry State Secretary Hilde Singsaas said.
For more: Norway $610bn wealth fund to cut Europe exposure
No comments:
Post a Comment