Sovereign Wealth Fund

Norway’s $2 trillion sovereign wealth fund, a major Tesla shareholder, opposes Elon Musk’s proposed $1 trillion pay package due to concerns about its size, dilution, and key person risk mitigation. Norges Bank Investment Management (NBIM) has already voted against the plan, citing concerns about governance implications. The news impacted Tesla shares, trading 2.4% lower premarket. The shareholder vote is a crucial test of investor confidence and could have broader ramifications for executive compensation in the tech industry. Critics argue the plan incentivizes short-term gains at the expense of long-term sustainability.

Norway’s $2 trillion sovereign wealth fund reported a 5.8% return for Q3, driven by strong equity market performance and AI optimism. Norges Bank Investment Management (NBIM) cited strategic asset allocation and favorable conditions. Equity investments yielded 7.7%, while fixed income returned 1.4%. The Fund’s diversified portfolio includes equities, fixed income, real estate, and renewable energy. The fund remains committed to broad diversification, despite returns slightly below the benchmark.