Norges Bank Investment Management, Norway’s oil fund invested around $707 million in fifty eight Turkey-based companies, according to the fund’s latest statement.
The company invested around $11 million in equities of eight energy companies. The companies include Enrjisa Enrji, Aksa Enrji Uretim, Ulusoy Elektrik Imalat Taahhut ve Ticaret, Eregli Demir ve Celik Fabrikalari, Petkim Petrokimya Holding, Tupras Turkiye Petrol Rafinerileri, Kardemir Demir Celik Sanayi ve Ticaret and Agyaz.
The companies which received the largest investment from the Norwegian Fund are TUPRAS with an investment of $63.6 million and Eregli Demir Celik with $28.8 million investment. The fund’s shareholding in the two companies stand at 1.02% and 0.59% respectively in TUPRAS and Eregli. The find invested around $6.3 million in Agyaz with 0.99% stake in the company. Steel producer Kardemir, Enerjisa, Ulusoy Elektrik, Petkim and Aksa are the recipients of minor investments from the fund.
Besides investments in energy companies, a largest investment was made in Garanti Bank. The fund paid $80.73 million for a 1.28% shareholding. The grocery retailer BIM and Turkish bank Akbank received $55 million and $74 million respectively from the fund. Turkish Airlines, received investments totaling $42 million from the fund last year.
The Norwegian oil fund started investing in Turkish businesses in 2001, since then in the last 11 years the fund has heavily invested in several Turkish companies. The fund owns a largest ownership share of 4% in Turkish furniture company Dogtas Kelebek and a 3.29% stake in Mavi Giyim, a clothing brand.
The fund has diversified investments in several sectors from food and drinks, furniture, chemical and glass production to communication services and banking. Norway is the third largest exporter of natural gas in the world after Russia and Qatar and the largest oil producer in Europe. The fund which is officially known as Government Pension Fund Global, is the world’s largest sovereign wealth fund.
Only 4% of the $1 trillion fund can be invested annually by the government which is the fund’s expected real return. The parliament has delegated the investment management job to the Norges Bank Investment Management. The fund which collectively controls 1% of market capitalization of the world, is reputed for adhering to ethical standards while making investment decisions.
The fund was valued at $960 billion or 8,256 billion kroner in the market by 2018 end. The equity allocation has grown rapidly over last couple of years and by December 2018, it stood at 66.3%. It had 30.7% in fixed income and 3% in unlisted real estate by 2018 end.