Norway’s oil fund was set up in 1996. It was to prevent Norway from getting into the resource curse.
The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources, tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.
The investment philosophy of the fund is to 0.25% better than benchmarks and to reduce errors.
The fund typically tracks 1.5% of all public listed companies in the world.
They maintain a balance of 60:40 of equity to bonds ratio.