Norges Bank Investment Management, Norway's $1.9 trillion sovereign wealth fund, has urged the EU to accelerate capital markets reform, warning that fragmented rules and declining business dynamism are pushing investment away from the region, as reported by the Financial Times.
In its response to the European Commission's consultation on capital markets integration, the fund calls for more ambitious action to address structural obstacles — including inconsistent securities laws, varying insolvency regimes, and uncoordinated tax policies. "European markets over time have fallen behind in terms of business dynamism and the provision of new investment opportunities," the letter notes.
Once holding 26% of its portfolio in European equities, the fund's exposure has dropped to 15% over the past decade. “We have seen over the last years that the number of European companies that we've been able to invest in has dropped,” Emil Framnes, Global Head of Equity Trading at Norges, told the FT.
For more on Norges' approach to investing and why it emphasizes culture and governance therein, read our Ground Breakers interview with Nicolai Tangen, CEO, and Carine Smith Ihenacho, Chief Governance and Compliance Officer, from the 2024 Compendium.
Join The Discussion