Norway’s $1 trillion wealth fund should keep oil stocks — government commission

The sovereign wealth fund, the world’s largest, invests Norway’s revenues from oil and gas production for future generations in stocks, bonds and real estate abroad. (Reuters)
Updated 24 August 2018
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Norway’s $1 trillion wealth fund should keep oil stocks — government commission

OSLO: Norway’s trillion-dollar sovereign wealth fund should continue to invest in oil and gas firms, a government-appointed commission recommended on Friday, contradicting earlier advice from the central bank.
A decision on whether to drop energy shares from the fund’s benchmark index, and thus divest tens of billions of dollars from oil and gas stocks over time, is expected later this year.
Shares of European oil and gas companies fell last November when the fund’s manager, the Norwegian central bank, announced its proposal to cut the exposure of the fund — and thus the Norwegian government — to oil price fluctuations.
“Divestments of the energy stocks in the (fund) is not an effective insurance against a permanent decline in oil prices. The energy stocks only contribute marginally to Norway’s oil price risk,” commission chair Oeystein Thoegersen said in a statement.
The fund, the world’s largest sovereign wealth fund, invests Norway’s revenues from oil and gas production for future generations in stocks, bonds and real estate abroad.
Energy stocks amounted to about 4 percent of the total value of the fund, or about 315 billion Norwegian crowns ($37 billion), at end-2017, said the commission.


Deutsche Bank appoints Riyadh GM

Updated 18 September 2018
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Deutsche Bank appoints Riyadh GM

  • German banking titan expects more deal flow from Kingdom
  • Deutsche Bank established base in Saudi Arabia in 2006

LONDON: Deutsche Bank has appointed Mohammed Alajmi as general manager of Deutsche Bank Riyadh Branch in Saudi Arabia.
He will have oversight of the bank’s business regulated by the Saudi Arabian Monetary Authority (SAMA), Deutsche Bank said in a statement.
The German banking giant originally established its Riyadh branch in 2006.
Alajmi joined Deutsche Bank in 2012 after more than a decade of working at local financial institutions in the Kingdom.
He was appointed chief operating officer in June 2015 overseeing the bank’s activities across all businesses and infrastructure functions.
The group expects to boost regional hiring this year, driven by expected corporate bond sales and initial public offerings, Bloomberg reported in February.