Norway’s $1 trillion sovereign wealth fund will divest from oil, but still hold these ASX small caps

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Norway has a sovereign wealth fund that is the envy of the rest of the world. It holds over US$1 trillion in assets including in around 300 ASX stocks (some of which are small caps).

But last week Norway’s parliament ordered it to divest from the majority of its coal and oil stocks. Specifically any company that generates over 10GW of power from coal or mines over 20 million tonnes of thermal coal annually.

Additionally, the fund has to invest in renewable energy projects, specifically wind and solar. Traditional energy companies which are investing in renewable energy may be spared the axe.

Norway’s finance minister Siv Jensen said earlier this year such a move would be, “to reduce the vulnerability of our common wealth to a permanent oil price decline”.

The price of oil can rise and fall quickly on factors as simple as OPEC production targets;  but for much of this year prices have been historically low as US production levels are at an all-time high.

What mining & energy small caps does the fund own?

In light of the decision, Stockhead has investigated which stocks the fund of Norway has invested in and therefore may be about to sell.

The fund is managed by Norge’s Bank and is listed as the beneficial owners of the stock although it has a separate custodian – namely Citi.

Its total portfolio of small cap mining and energy stocks currently consists of these 22 stocks.

What small caps will it still own?

But even if it sells all their mining and energy stocks it will still own over 80 ASX small caps – as well as several more large caps.

It holds almost every industry available on the ASX including food stocks such as Huon (ASX: HUO) and Select Harvests (ASX: SHV) and retailers such as City Chic Collective (ASX: CCX) and Baby Bunting (ASX: BBN).

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