According to Norges Bank Investment Management, Norway’s $1.5 trillion sovereign wealth fund, the world’s largest, has been appointed by a U.S. court to co-lead an action to recover significant investment losses. Norway Sovereign Wealth Fund will lead investors’ action related to Silicon Valley Bank’s collapse.
The manager of Norway’s huge sovereign wealth fund is stepping into new territory by leading a class action for the first time – joining Sweden’s largest state pension fund in a bid in the US to recoup investment losses on the failed Silicon Valley Bank (SVB).
SVB’s collapse in March was the trigger for the worst banking shock since the 2008 global financial crisis, sending bank stocks globally on a wild ride. It is the first time that Norges Bank will lead a legal action, so called class action, on behalf of a group of investors.
Norway Sovereign Wealth Fund Will Lead Investors’ Action Related to Silicon Valley Bank’s Collapse, continues below the image.
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Related: Responsible Investing in Norway
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The Norwegian fund said the SVB case raised significant concerns regarding the integrity of the public markets, the governance of large financial institutions and the interests of the investor community more broadly. Nicolai Tangen, NBIM’s chief executive officer, said: “We manage money on behalf of all Norwegians. I see it as our duty to take legal action to both maximize our recoveries after the SVB collapse and to signal that this is not acceptable market behavior”.
Carine Smith Ihenacho, chief governance- and compliance officer at NBIM, said: “It is important for us to take legal action where the alleged conduct raises significant concerns about market integrity.”
The fund, which invests Norway’s surplus oil and gas revenue abroad, is the world’s biggest single stock market investor, owning some 1.5% of all globally listed shares with stakes in more than 9,200 companies.
Norway Sovereign Wealth Fund Will Lead Investors’ Action Related to Silicon Valley Bank’s Collapse, continues below the image.
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Related: Norway’s Gigantic Sovereign Wealth Fund 2022-2023
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“Given our role as co-lead plaintiff our aim is to maximize recoveries of all investor losses”, Tangen added. A year ago, the Oslo-based investment manager signaled in its new multi-year strategy plan that it would escalate its active-ownership work.
NBIM held a 1% stake in SVB at the end of 2022, valued at $137.9 million, according to data on the fund’s website.
Norway Sovereign Wealth Fund Will Lead Investors’ Action Related to Silicon Valley Bank’s Collapse, written by Tor Kjolberg