Financial Expert Martin Skancke advises Oil Fund to dispose of thousands of small firms. Chief fund, Yngve Slyngstad, disagree, writes DN.
– The consideration of risk diversification implies basically that spread investment most. But it is in practice less risky to be invested in 9000 companies than 2,000 companies? The question is whether the contribution to risk diversification outweigh additional costs for management and monitoring. I think the Oil Fund could lead a better control with fewer companies, Skancke told the newspaper.
Oil Fund is now staggering 6500 billion. Last year voiced fund of over 105,000 proposals some 10,000 general meetings.
– We know about 500 companies in depth, but it is a good deal of companies we do not have in-depth knowledge, says Yngve Slyngstad, CEO of NBIM to DN.
– Some would think that small firms provide greater risk, but in our opinion it is the long term less risk to have a broader portfolio, says Slyngstad.
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