The world’s biggest wealth fund from Norway plans to continue investing in Britain amidst Brexit.
Norges Bank Investment Management, which has over $1 trillion in funds, will continue to be ‘significant investors’ in the UK. In fact, it takes a long-term investment view of three decades or 30 years and expects to reap bigger returns over the years.
“We foresee that over time our investments in the UK will increase,” said chief executive Yngve Slyngstad.
While political decisions, such as the UK withdrawing from the European Union, will not stop Norway’s sovereign wealth fund, it appears that their total asset value dropped by 6 per cent last 2018. This is a significant decline in their asset since UK investments make up for 8.5% of the stock portfolio.
Then again, the market gains at the start of the year are claimed to have ‘wiped out’ last year’s losses.
Regardless, the fund now owns five firms such as HSBC and BP among others, plus tons of properties in the UK, particularly some parts of the New Bond Street, several properties on Savile Row, West End of London and roughly 25 per cent of Regent Street. In addition, there’s the £400 million property on Oxford Street.
On the other hand, some experts are claiming that Norges Bank Investment Management continues to invest because apparently, British assets are in ‘bargain’. In addition, since Brexit, the depreciation of the pound exists, leading to assets going down.