KLP AksjeGlobal Indeks (KLP's Global Index Fund) has surpassed NOK 100bn making it the largest equity fund in Norway.
The global index fund was established in 2004 with NOK 3bn as an initial contribution from the municipality and Norwegian health pension company KLP. Nineteen years later, the fund has grown to NOK 100bn and is split into a currency-hedged and a non-currency-hedged part.
The fund consists of around 1,400 shares spread across a global portfolio with everything from large Norwegian businesses to companies such as Microsoft and Apple. Among the buyers are both large investors and small savers.
Commenting, KLP head of index-based management, Kristoffer Sundnes, said: “The fund is KLP's flagship and our most effective product. Here, customers get good management for cheap money.”
He added that the lion's share of the money comes from large external customers such as pension funds and institutions.
Many Norwegians have opened their eyes to global index funds. Especially since the summer of 2020, small savers have flocked to the KLP fund.
“They have understood that it is good to invest in global index funds, where the fees are low and the risk spread is large. Historically, we have also seen that global index funds give good returns,” he added.
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