Norway appoints new wealth fund supervisor at central bank

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FILE PHOTO: A general view of the Norwegian central bank, where Norway’s sovereign wealth fund is situated, in Oslo, Norway, March 6, 2018. REUTERS/Gwladys Fouche

OSLO (Reuters) -Norway has appointed Oeystein Boersum as deputy governor and executive board member of its central bank, with a dedicated mandate to supervise the world’s largest sovereign wealth fund, the government said on Friday.

Boersum, until now chief credit strategist and chief economist at Swedbank in Oslo, was appointed to a six-year term.

While day-to-day operation of the $1.3 trillion fund is run by Norges Bank Investment Management and its chief executive, Nicolai Tangen, the central bank’s board sets its budgets and risk guidelines and manages relations with the finance ministry.

The Norwegian wealth fund owns on average 1.4% of all globally listed equities, making it one of the world’s largest stock market investors. It also owns fixed-income assets, unlisted real estate and renewables projects.

Boersum replaces Jon Nicolaisen, who stepped down in December.

As second deputy governor, he will rank third in the central bank hierarchy after Governor Oeystein Olsen and first deputy governor Ida Wolden Bache.

“Boersum … will add both capacity and valuable competence to the executive board,” Finance Minister Jan Tore Sanner said in a statement.

The new deputy will also join the central bank’s five-person monetary policy committee, in charge of setting interest rates which, along with the executive board, is headed by Olsen.

Ida Wolden Bache is also a member of the monetary policy committee and has a particular responsibility for traditional central banking operations, including the promotion of financial stability.

Reporting by Terje Solsvik, editing by Gwladys Fouche and Catherine Evans

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