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Norway’s USD 1tn wealth fund wants a bigger bite of big tech

Norway’s USD 1tn wealth fund proposed changes to how its holdings are weighted geographically, calling  for a reduction in investments in Europe and for taking a bigger chunk of the U.S. stock market dominated by biggest technologycompanies.
Photo: Jens Dresling
Photo: Jens Dresling
BY BLOOMBERG / SVEINUNG SLEIRE

In a letter sent to the Finance Ministry on Tuesday, the fund said that “the geographical distribution should 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 the review the geographical weighting that had been in place since 2012. 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 U.S. markets.

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