Now, the Norwegian central bank, which manages the fund, is proposing that it ditch the investments in the very industry the fund was built on.
In a letter to Norway’s finance ministry, Norges Bank wrote: “We conclude that the vulnerability of government wealth to a permanent drop in oil and gas prices will be reduced if the fund is not invested in oil and gas stocks, and advise removing these stocks from the fund’s benchmark index.”
The recommendation rested “exclusively on financial arguments”, it added. Climate change and the environment did not even merit an aside – the advice is all about a fund manager maximising value for their client.
If your income is being made from one particular activity or industry then your investments should almost certainly be made into other activities and industries, shouldn’t they?
You know, diversified investment?
You don’t put your pension into your employers’ shares after all…..