Norway’s fund counts divestment cost
Norway’s Government Pension Fund Global’s equity portfolio missed out on 1.1 percentage points of additional gain due to the exclusion of stocks on ethical grounds over the past 11 years, according to Norges Bank Investment Management, which manages the sovereign wealth fund’s assets.
A report by Norges Bank said its benchmark index for equities is based on the FTSE Global All Cap index.
The Oslo-based 7.5 trillion Norwegian kroner ($870 billion) sovereign wealth fund divests companies from its investment portfolio based on two types of exclusions. Product-based exclusions include weapons, thermal coal, and tobacco producers and suppliers. Conduct-based exclusions concern companies with a track record of human rights violations, severe environmental damage and corruption.
Norway’s finance ministry has also barred the fund from investing in Israeli companies that operate in the occupied West Bank. PHOTO: Voz iz Neias