Norway Wealth Fund CEO Tangen on FY, Strategy, Inflation

The transcript discusses investment strategies for 2023, focusing on maintaining proximity to the index to manage risks. It highlights the challenges of global inflation, particularly with China's economic resurgence, and the importance of simplifying investments by reducing the number of companies in the portfolio. The conversation also touches on the potential risks of sticky inflation and unexpected market events, emphasizing the need for careful planning and risk management.

What was one of the key strategies that led to excess returns for the fund last year?

• Focusing on emerging markets

• Underweighting established companies

• Being overweight in integrated energy companies

• Investing heavily in technology stocks

Why is it important for the fund to stay close to the index?

• To comply with international regulations

• To attract more investors

• To avoid large losses and maintain job security

• To maximize short-term gains

What is a major concern for equity markets in 2023?

• The decline of the tech industry

• Political instability in Europe

• The rise of cryptocurrency

• Global inflation driven by China's economic activities

Why is the fund considering reducing the number of companies it invests in?

• To reduce complexity and maintain returns

• To increase diversification

• To focus on high-risk investments

• To comply with new regulations

What is the main goal of simplifying the fund's investments?

• To reduce complexity and maintain diversification

• To increase the number of holdings

• To focus solely on domestic markets

• To align with global investment trends

What is a potential threat to the reestablishment of the bond-equity relationship?

• Rising interest rates

• Technological advancements

• Sticky inflation

• Decreasing global trade

What is considered a 'known unknown' risk in the market?

• Expected inflation rates

• Predictable economic downturns

• Unforeseen global events like pandemics

• Scheduled policy changes