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Huge investment expansion by Norwegian Pension Fund in BD

Published : Monday, 6 March, 2017 at 4:46 PM  Count : 384

Huge investment expansion by Norwegian Pension Fund in BD

Huge investment expansion by Norwegian Pension Fund in BD

Norwegian Government Pension Fund Global, the world's largest sovereign wealth fund, has substantially expanded its investment in Bangladesh, showing a six-fold expansion.

Pension Fund invested in Bangladeshi stocks for the first time in 2015, the total was a modest US$ 19 million. By the end of 2016, the fund's investment had grown six fold to US$ 112 million in 15 Bangladeshi companies on Dhaka stock exchange.

"The significant growth in investments in Bangladesh by the Norwegian Government Pension Fund Global is very positive. I see this as a confirmation that the Bangladeshi economy is maturing and companies are regarded as promising investments," Norwegian Ambassador Sidsel Bleken was quoted in a statement on Monday as saying.

She said investments by the Fund is done on a strictly commercial basis and is not an expression of political preferences or decisions, according to an official Facebook post shared by the Norwegian Embassy in Dhaka.

The Fund has clear expectations of companies in areas such as corporate governance, shareholder rights, social issues and the environment.

The guidelines for investments are made by the Norwegian parliament but the day-to-day management is not influenced by politicians.

The Ambassador also points out that global investors like the Pension Fund are looking for a stable and predictable business environment. The government of Bangladesh needs to continue to create a level-playing field where companies are treated on an equal basis, says Sidsel Bleken.

The total market value of investments done by the Government Pension Fund Global, better known as the Norwegian Oil fund, is close to US$ 900 billion.

The Fund was established in 1990 and is built up by revenue from oil and gas activities on the Norwegian continental shelf. It owns stock in 9,000 companies in 77 countries, while 1.3 percent of all public listed stocks worldwide.


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