How Norway spends its $882B global fund
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How Norway spends its $882B global fund
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Re: How Norway spends its $882B global fund
#2882 B / 5.2 Million ~= $170k for every citizen of Norway.
At 4% a year that's $6,800 each in annual income. Not bad!
Re: How Norway spends its $882B global fund
#3"It is run frugally and transparently" is a dubious claim, at least according to claims made on NRKs Folkeopplysningen (a show like Penn and Teller: Bullshit, just better).
The fund spends a lot on being actively managed, one manager received ~$60 million in bonuses in 2010. However, they won't reply when people ask if bonuses are actually financially beneficial.
https://tv.nrk.no/serie/folkeopplysningen/KMTE50009215/seson... @ 28:30
Re: How Norway spends its $882B global fund
#4"It is run frugally and transparently" is a dubious claim, at least according to claims made on NRKs Folkeopplysningen (a show like Penn and Teller: Bullshit, just better). The fund spends a lot on being actively managed, one manager received ~$60 million in bonuses in 2010. However, they won't reply when people ask if bonuses are actually financially beneficial. https://tv.nrk.no/serie/folkeopplysningen/KMTE50009215…
Anecdotally; I spoke to a person from "Norges Bank Investment Management" today at a careers fair about this issue, and apparently this example of using active external investors is something that they have been avoiding since, and that the magnitudes of their internal bonuses are far more restrictive.
Re: How Norway spends its $882B global fund
#5"It is run frugally and transparently" is a dubious claim, at least according to claims made on NRKs Folkeopplysningen (a show like Penn and Teller: Bullshit, just better). The fund spends a lot on being actively managed, one manager received ~$60 million in bonuses in 2010. However, they won't reply when people ask if bonuses are actually financially beneficial. https://tv.nrk.no/serie/folkeopplysningen/KMTE50009215…
It's because financial transparency doesn't have allot of competition, it's a low bar to say and do some transparent things
Anyway, that manager needs to negotiate a better deal if they only get 60m annually with almost a trillion AUM
Re: How Norway spends its $882B global fund
#6"It is run frugally and transparently" is a dubious claim, at least according to claims made on NRKs Folkeopplysningen (a show like Penn and Teller: Bullshit, just better). The fund spends a lot on being actively managed, one manager received ~$60 million in bonuses in 2010. However, they won't reply when people ask if bonuses are actually financially beneficial. https://tv.nrk.no/serie/folkeopplysningen/KMTE50009215…
$60m isn't exactly the real cost to the government, though? Assuming this asset manager is a Norwegian resident, he'll pay a ton of tax (income or corporate tax, VAT, stamp duty on property purchases, capital gains, etc etc) on that money, and eventually given enough time, most will just flow back to the government. The house always wins..
Also, it depends on how much he brings in. For example, there are US based asset managers with private funds that generate 20-30-40% per annum, for over 20 years. If the performance is there, they should get compensated well for that. Otherwise, why put up with the stress of managing billions of dollars?
Re: How Norway spends its $882B global fund
#7Is there an index or ETF which follows this pension fund's investments?
Re: How Norway spends its $882B global fund
#8"It is run frugally and transparently" is a dubious claim, at least according to claims made on NRKs Folkeopplysningen (a show like Penn and Teller: Bullshit, just better). The fund spends a lot on being actively managed, one manager received ~$60 million in bonuses in 2010. However, they won't reply when people ask if bonuses are actually financially beneficial. https://tv.nrk.no/serie/folkeopplysningen/KMTE50009215…
$60m isn't exactly the real cost to the government, though? Assuming this asset manager is a Norwegian resident, he'll pay a ton of tax (income or corporate tax, VAT, stamp duty on property purchases, capital gains, etc etc) on that money, and eventually given enough time, most will just flow back to the government. The house always wins.. Also, it depends on how much he brings in. For example, there are US based ass…
The asset manager in question, Mattias Westman, wasn't Norwegian.
> there are US based asset managers with private funds that generate 20-30-40% per annum, for over 20 years.
That seems extremely dubious. Do you have any sources?
Re: How Norway spends its $882B global fund
#9"It is run frugally and transparently" is a dubious claim, at least according to claims made on NRKs Folkeopplysningen (a show like Penn and Teller: Bullshit, just better). The fund spends a lot on being actively managed, one manager received ~$60 million in bonuses in 2010. However, they won't reply when people ask if bonuses are actually financially beneficial. https://tv.nrk.no/serie/folkeopplysningen/KMTE50009215…
$60m isn't exactly the real cost to the government, though? Assuming this asset manager is a Norwegian resident, he'll pay a ton of tax (income or corporate tax, VAT, stamp duty on property purchases, capital gains, etc etc) on that money, and eventually given enough time, most will just flow back to the government. The house always wins.. Also, it depends on how much he brings in. For example, there are US based ass…
... and the inhabitants always lose
Re: How Norway spends its $882B global fund
#10A little over decade ago, when Norway's fund was called "the Petroleum Fund" and had "only" $147B, an article in Slate magazine explained what was special about it:
"Norway has pursued a classically Scandinavian solution. It has viewed oil revenues as a temporary, collectively owned windfall that, instead of spurring consumption today, can be used to insulate the country from the storms of the global economy and provide a thick, goose-down cushion for the distant day when the oil wells run dry."[1]
Since then, the fund has grown six-fold.
[1] http://www.slate.com/articles/business/moneybox/2004/10/avoi...