• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Alternative

DNB sees another year of challenge in Norway

DNB sees another year of challenge in Norway
  • Jonathan Boyd
  • Jonathan Boyd
  • 30 August 2016
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Rune Bjerke, group CEO of the DNB group, Norway’s biggest financial services provider, has commented at the ongoing ONS 2016 oil and gas sector industry conference that he sees another tough year ahead for Norwegian businesses before the economy starts to turn by the end of 2017 into 2018.

Bjerke’s comments were reported by local business daily Dagens Næringsliv, which added that the bank sees some 50 key problem clients amongst its 230,000 business customers currently on its books. Most of these are in the oil and gas sector, which has been hit hard by the fall in global prices for hydrocarbons in recent times.

Related articles

  • Oil fall lays Norwegian funds low
  • Norwegian gas export cut possible threat to funds
  • Nordea HQ move questions continue ahead of board meeting
  • Decade high seen in new issues via Oslo Børs

Even when the oil price rises, it can take time for this to feed through in terms of factors such as investment decisions, DN reports Bjerke saying.

According to data from FE, there are some 11 funds in its Offshore Mutual universe that have more than 50% exposure to Norway. Over the past three years, these have tended to provide positive returns in euros, although in the near term they have also performed generally speaking well in terms of returns denominated in euros.

Over the three-year period to 30 August, NOK has generally weakened against the euro and the dollar, which suggests that the returns from funds have been higher still in local currency. The link to oil is ever present on the local stock market: Statoil figures as a key holding in many of the funds identified, reflecting its dominant position by market capitalisation value versus other Norwegian companies.

The response of the broader Norwegian economy to improvements in the global oil price, as noted by Bjerke, is therefore both encouraged and challenged by developments at Statoil. Recently, it announced a new investment plan for its large Johan Sverdrup field. Norwegian authorities have approved a new development plan worth some NOK99bn – down NOK24bn from an earlier plan. Key to this, however, is that Statoil has also stated that the breakeven price for the field’s production has been lowered to $25 per barrel. Total investment in the field is estimated at some NOK140bn-170bn ($17bn-20.5bn).

Funds 1m 3m 6m 1yr 3yr (return in %)
Storebrand Vekst in EU 4.33 6.78 27.49 33.93 44.20
Storebrand Optima Norge A in EU 4.10 1.17 11.44 6.58 21.50
Storebrand Norge in EU 2.41 0.44 11.49 6.85 16.66
Odin Norge NOK in EU 2.81 0.85 10.28 5.79 15.53
Storebrand Aksje Innland in EU 2.96 0.33 10.76 5.27 9.65
Nordea 1 Norwegian Equity E NOK in EU 1.95 2.08 12.88 8.42 8.65
Storebrand Verdi in EU 2.35 -1.55 7.40 5.54 8.36
Storebrand Stat A TR in EU 1.36 1.56 3.37 2.59 0.21
KBC Renta Nokrenta Cap in EU 1.36 1.91 3.51 2.65 -1.22
Nordea 1 Norwegian Bond E NOK in EU 1.25 1.55 3.74 1.64 -3.16
Nordea 1 Norwegian Kroner Reserve E NOK in EU 1.65 0.30 3.04 0.47 -10.81

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Alternative
  • Nordic
  • DNB
  • Norway
  • Commodities

More on Alternative

Future of international fund domiciles in post-pandemic world

  • Alternative
  • 09 April 2021
HSBC AM unveils new alternatives investment team

  • Alternative
  • 17 February 2021
Janus Henderson Investors launches multi-strategy UCITS fund

  • Alternative
  • 03 June 2020
Law firm comments Esma shorting policy amid Coronavirus crisis

  • Alternative
  • 19 March 2020
Columbia Threadneedle suspends dealing in retail property fund

  • Alternative
  • 19 March 2020
Back to Top

Most read

First digital only bank in UAE set to go live
First digital only bank in UAE set to go live
Standard Chartered names Singapore heavy hitter for global role
Standard Chartered names Singapore heavy hitter for global role
UK regulator bans financial adviser for dishonesty
UK regulator bans financial adviser for dishonesty
Bitcoin hits record high on cusp of Coinbase IPO
Bitcoin hits record high on cusp of Coinbase IPO
DeVere UK and Fidelius enter strategic partnership
DeVere UK and Fidelius enter strategic partnership
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading