Norway’s Sovereign Fund With Massive Investments in Turkey

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Norway's Sovereign Fund With Massive Investments in Turkey

Norway’s oil fund, the world’s largest sovereign wealth fund, has bought shares in more than 53 Turkish companies with investments totaling around $800 million up to the end of 2020, according to official figures from Norway’s Norges Bank Investment Management. Read more about Norway’s Sovereign Fund with massive investments in Turkey.

The Government Pension Fund of Norway has invested more than US$1 trillion in assets. It holds a massive market influence globally because it owns 1.5% of the world’s listed shares. It operates under ethical guidelines set by the country’s parliament.

Norway’s oil fund, the world’s largest sovereign wealth fund, bought shares in six Turkish energy companies with investments totaling around $117 million up to the end of 2019, according to official figures from Norway’s Norges Bank Investment Management.

Related: Norway’s Sovereign Wealth Fund Liquidates Assets

The fund also holds the largest single stake (4.01%) in Turkey’s first automotive manufacturer, Türk Traktor, while its biggest investment overall was in Akbank with $73.4 million for a 1.51 percent ownership.

Norway’s fund has also the largest ownership share in one of the biggest Turkish software companies Logo with a 5.05 percent stake.

Norway's Sovereign Fund With Massive Investments in Turkey
Norway’s fund has also the largest ownership share in one of the biggest Turkish software companies Logo

The Scandinavian country’s fund also invested in a variety of sectors in Turkey, including communication services, glass and chemicals production, furniture and food and drinks companies.

Norway is Europe’s largest oil producer and the world’s third-largest natural gas exporter after Russia and Qatar.

By the end of 2020, the fund’s market value was 11,028 billion kroner.

By the end of 2020, the fund returned 10.9 percent, or 1.07 trillion kroner ($126 billion).

Related: Norway’s Government Pension Fund Surpasses the $1 Trillion Mark

The fund’s largest fixed-income holdings are in U.S. government bonds.

It owns stakes in more than 9,000 companies globally, with its biggest holdings in tech giants Microsoft Corp. and Apple Inc, followed by Switzerland’s Nestle SA, Google parent firm Alphabet Inc and Amazon Inc.

Norway's Sovereign Fund With Massive Investments in Turkey
The fund also holds the largest single stake (4.01%) in Turkey’s first automotive manufacturer, Türk Traktor

The Norwegian government can spend only 3 percent of the fund’s total interest income per year, which is the expected real return on the fund, according to Norges Bank Investment Management, which was delegated by the country’s parliament as the fund manager.

Norway’s Sovereign Fund With Massive Investments in Turkey, written by Tor Kjolberg

Feature image (on top) © Spot Blue

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Journalist, PR and marketing consultant Tor Kjolberg has several degrees in marketing management. He started out as a marketing manager in Scandinavian companies and his last engagement before going solo was as director in one of Norway’s largest corporations. Tor realized early on that writing engaging stories was more efficient and far cheaper than paying for ads. He wrote hundreds of articles on products and services offered by the companies he worked for. Thus, he was attuned to the fact that storytelling was his passion.