Opened State Fund in Tromsø, Northern Norway
The State Fund in Tromsø, managed by Folketrygdfondet, will soon start investing. Its office in the city center was officially opened on Monday by Norway's Minister of Finance Jens Stoltenberg (Labor) together with the former MoF and now MP Trygve Slagsvold Vedum (Centre), and Tromsø Mayor Gunnar Wilhelmsen. (Photo: Astri Edvardsen)
Tromsø (High North News): On Monday, the Norwegian Minister of Finance Jens Stoltenberg opened the State Fund in Tromsø, which will invest in Nordic small-cap listed companies. This establishment will strengthen Northern Norway's financial environment, says Stoltenberg.
"Opening the State Fund in Tromsø is a historical event. This is good for the city, the region, and for Norway's state budget and the budget balance," says the Norwegian Minister of Finance Jens Stoltenberg.
"This will strengthen the financial environment in Northern Norway and make Tromsø more attractive for both people and businesses. We are also recruiting labor and smart minds which we would not have reached if this had been located in the south in the country," Stoltenberg continues.
The fund is to invest in Nordic small-cap listed companies. Its initial capital is NOK 15 billion, and the investment framework can be considered increased to NOK 30 billion as experience is gained.
The Centre Party leader and MP, Trygve Slagsvold Vedum, was also present at the opening. He launched the new fund in 2024 while serving as Minister of Finance.
"State asset management is becoming increasingly important, and we do not want all this management to take place in Oslo [Norway's capital, ed. note]. Therefore, I was concerned with locating this fund in Tromsø. I hope and believe that this establishment will create a larger capital and finance environment in Northern Norway, and also contribute to strengthening the UiT School of Business and Economics through collaborative projects," says Vedum.
The management of the fund has been placed with Folketrygdfondet, which manages the Government Pension Fund of Norway (GPFN). As of today, four portfolio managers are employed at the Tromsø office, with plans to hire one more.
More about the State Fund in Tromsø
· The Norwegian parliament, the Storting, passed the Act on the State Fund in Tromsø in June 2024.
· The purpose of the establishment is to contribute to building asset management environments in Northern Norway.
· The goal of the fund's investments is to achieve the highest possible return at an acceptable risk. The fund is not intended to contribute to state capital access for Northern Norwegian companies specifically.
· The fund will invest based on a market-weighted index comprising Nordic listed small-cap companies.
· Swedish companies account for around half of the fund's investment universe, followed by Danish (22 percent), Finnish (13 percent), Norwegian (9 percent), and Icelandic (6 percent) companies. The three largest sectors will be industry (27 percent), health (25 percent), and finance (21 percent).