OSLO- Norway's $1.1 trillion sovereign wealth fund, the world's largest, must be prepared for a rocky ride in the next three years as global issues from trade wars to climate change buffet its portfolio, its management said on Tuesday.
The fund will continue to hold about 70% of its assets in global equities, Norges Bank Investment Management said in a report setting out its goals for the period from 2020 to the end of 2022,
"Trends and disruptions in the global economy such as increased trade barriers, low global interest rates, changing technology paradigms and climate change will affect the fund. We should be prepared for large fluctuations in the value," it said.
With investments in more than 9,000 foreign companies and with the remaining 30% of its portfolio spread across fixed income and real estate, the fund saves revenues from Norway's oil and gas industry for future generations.
As of mid-2019, its single largest equity investment was a 85.4 billion Norwegian crowns ($9.35 billion) stake in Microsoft Corp, followed by Apple Inc, Amazon Inc and Nestle SA.
In a change of policy, the fund will in the next few years begin to release its voting intentions ahead of annual general meetings and other shareholder votes, thus promoting greater transparency, it said.
In all but a handful of cases, the fund's voting record is currently released only after meetings have been held.
Built since 1996, the size of the fund has grown to almost three times that of Norway's annual gross domestic product, far exceeding original projections.
($1 = 9.1370 Norwegian crowns)
(Reporting by Terje Solsvik, Editing by Andrew Heavens and Angus MacSwan) ((firstname.lastname@example.org; +47 918 666 70))