The value of their investments is lower because they’ve been pulling out of Russia. The article you sent says they’ve slashed the value down by 90%, and they’re still going. Liquidating hundreds of millions in stocks while getting a decent value out of them takes time, and so far they’ve done a pretty good job selling off 90% of their Russian holdings with just a few more millions to go
Let’s break down that January 31, 2023 article once more:
1: The investments in Moscow listed equities dropped from $2.7 billion to a mere $300 million.
It would be laughably naive to think this is purely because they’ve been ‘pulling out’ of Russia. By all means, review the article and let me know if it states the exact reason for the decrease in value.
2: By December 31, 2022, Norway still had shares in 51 Russian companies.
It’s September 2023. If they were aggressively pulling out, wouldn’t they have zero investments by now?
Timelines for individual retail investors are significantly shorter than timelines for multibillion dollar sovereign wealth funds with fiduciary obligations.
And yet all the investments, their value, and what percentage of ownership the Norwegian Sovereign Wealth Fund possess are all publicly available on their website.
If I filter by ‘Russia’, they still show 51 companies. Today. Let’s look at their top five, which you can also view by accessing their own data.
Highest Percentage of Ownership:
Lenta International Co PJSC: 2.25%
Rosseti Centre PJSC: 2.69%
Ufaorgsintez OAO: 0.99%
Segezha Group PJSC: 1.16%
Bank St Petersburg PJSC: 1.76%
Highest Amounts of Investment in NOK:
Gazprom PJSC: 731,368,780
LUKOIL PJSC: 536,571,485
Sberbank of Russia PJSC: 523,299,961
Novatek PJSC: 118,267,597
Surgutneftegas PJSC: 76,130,966
^ these alone = ~$185,140,710 USD.
What fiduciary obligations does a pension fund have that is somehow more complex, important, and forgivable vs obligations belonging to Pepsi Co?
What fiduciary obligations does a pension fund have that is somehow more complex, important, and forgivable vs obligations belonging to Pepsi Co?
I largely agree with what your saying but this part is ridiculous. The Finnish parliament has no obligations to serve/sell Pepsi. It’s not an investment it was literally having the drink available. That’s not at all comparable to the fiduciary duty of a pension fund.
Sure, but now tell me how the richest pension fund in the world, currently valued in the trillions, has such fiduciary obligation that it can’t divest ~$300 million of Russian investments.
My original comment (to which you responded) regarding the obligations of Pepsi Co were highlighting a critical comparison between a corporate drinks manufacturer and the pension fund. The Finnish Parliament can do what they like. If they’re doing it because Pepsi Co hasn’t fully pulled out of Russia, and thus Pepsi deserves to be shunned, what does Norway deserve?
If action is mandated for entities that don’t divest from Russia, then it must equally be applicable to all entities where this is true. Otherwise, hypocrisy.
Yes, you did. That’s the part I largely agreed with. The part I don’t agree with is fiduciary funds obligations not being more complex than serving drinks in your cafeteria/restaurant.
The value of their investments is lower because they’ve been pulling out of Russia. The article you sent says they’ve slashed the value down by 90%, and they’re still going. Liquidating hundreds of millions in stocks while getting a decent value out of them takes time, and so far they’ve done a pretty good job selling off 90% of their Russian holdings with just a few more millions to go
Let’s break down that January 31, 2023 article once more:
1: The investments in Moscow listed equities dropped from $2.7 billion to a mere $300 million.
It would be laughably naive to think this is purely because they’ve been ‘pulling out’ of Russia. By all means, review the article and let me know if it states the exact reason for the decrease in value.
2: By December 31, 2022, Norway still had shares in 51 Russian companies.
It’s September 2023. If they were aggressively pulling out, wouldn’t they have zero investments by now?
Nice try.
Timelines for individual retail investors are significantly shorter than timelines for multibillion dollar sovereign wealth funds with fiduciary obligations.
And yet all the investments, their value, and what percentage of ownership the Norwegian Sovereign Wealth Fund possess are all publicly available on their website.
If I filter by ‘Russia’, they still show 51 companies. Today. Let’s look at their top five, which you can also view by accessing their own data.
Highest Percentage of Ownership:
Highest Amounts of Investment in NOK:
^ these alone = ~$185,140,710 USD.
What fiduciary obligations does a pension fund have that is somehow more complex, important, and forgivable vs obligations belonging to Pepsi Co?
I largely agree with what your saying but this part is ridiculous. The Finnish parliament has no obligations to serve/sell Pepsi. It’s not an investment it was literally having the drink available. That’s not at all comparable to the fiduciary duty of a pension fund.
Sure, but now tell me how the richest pension fund in the world, currently valued in the trillions, has such fiduciary obligation that it can’t divest ~$300 million of Russian investments.
Make it make sense.
Did you miss the first few words I wrote?
I did not. Happy to help!
My original comment (to which you responded) regarding the obligations of Pepsi Co were highlighting a critical comparison between a corporate drinks manufacturer and the pension fund. The Finnish Parliament can do what they like. If they’re doing it because Pepsi Co hasn’t fully pulled out of Russia, and thus Pepsi deserves to be shunned, what does Norway deserve?
If action is mandated for entities that don’t divest from Russia, then it must equally be applicable to all entities where this is true. Otherwise, hypocrisy.
Yes, you did. That’s the part I largely agreed with. The part I don’t agree with is fiduciary funds obligations not being more complex than serving drinks in your cafeteria/restaurant.