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Head of Norway’s Wealth Fund Resigns Over Security Clearance Denial

Norges Bank’s deputy governor said his clearance was rejected because he has a wife who lives in China.
By Michael Katz


The deputy governor of Norway’s central bank resigned last week after he said he was denied security clearance because he has a Chinese wife who lives in China.

Jon Nicolaisen, who as deputy governor of Norges Bank managed the country’s $1.25 trillion sovereign wealth fund, was granted his request to resign immediately by Norway’s Ministry of Finance.

“Civil clearance authority states to me that the reason why I do not receive renewed security clearance is that my wife is a Chinese citizen and lives in China where I support her financially,” Nicolaisen said in a statement. “At the same time, they state that it is not the circumstances of me personally that create doubts about my safety suitability, but that this does not weigh heavily enough. I have now had to take the consequences of that.”

Nicolaisen, who had been appointed deputy governor of the bank by the king of Norway in 2014, was reappointed in April of this year and was given responsibility for managing the Government Pension Fund Global (GPFG).

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“I will miss Jon Nicolaisen in his position as deputy governor, a position he has held in an excellent way as a close colleague and skilled professional,” Norges Bank Governor Øystein Olsen said in a statement. “Through key positions in the bank, he has for a number of years made a significant contribution to the development of Norges Bank.”

The Ministry of Finance said it will immediately launch a recruitment process to fill the position. In consultation with Norges Bank, it will decide whether there is a need to hire someone for the position temporarily, pending permanent employment.

Prior to becoming the deputy governor, Nicolaisen, who had been with the central bank since 1995, was chief of staff and before that was director of monetary policy. He has also held positions in Norway’s Ministry of Finance, the Organization for Economic Co-operation and Development (OECD), and the Reserve Bank of New Zealand.

According to Reuters, Norway’s PST intelligence service has accused Russia, China, and other countries of using espionage to steal secrets of Norway’s petroleum industry and plans by its government to cut or increase oil and gas production.

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Home > News > Risk > Coronavirus - COVID-19 > A Look Ahead to 2021: Institutional Investors Brace for a Bumpy Road
Coronavirus - COVID-19

A Look Ahead to 2021: Institutional Investors Brace for a Bumpy Road

The majority of global allocators are planning defensive strategies, expecting slides in everything from stocks to SPACs, a Natixis survey says.
By Sarah Min


Investors around the world are concerned that the markets are poised for troubles ahead. So they are planning defensive strategies for their portfolios as they look to 2021, according to a Natixis survey. 

The broad majority of institutional investors believe the global economy has yet to reckon with the consequences of COVID-19, according to a Tuesday report. Eight out of 10 allocators believe gross domestic product (GDP) levels will not return to pre-COVID-19 levels until 2022 at the earliest. 

Market and sector corrections are on the horizon, investors say. Four out of 10 investors believe the stock market, real estate sector, technology sector, or cryptocurrency will suffer drawdowns in 2021, while another 20% to 30% of investors say bonds, initial public offerings (IPOs), and special-purpose acquisition companies (SPACs) will encounter corrections. 

In response, more than half of investors (53%) are planning to take a defensive stance, while 47% plan to use aggressive strategies. About a third of investors expect hedge funds will help manage risk, versus better returns, in their portfolios. Eight out of 10 investors say equity factor diversification is important to consider. 

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Allocators don’t plan to change their asset allocations, but they do want to rearrange investments within them. In equities, which investors expect will remain a 36% allocation in their portfolios, about a third of investors are expecting to decrease exposure to US equities in 2021 in favor of European, emerging market, and Asia Pacific stocks. 

In fixed income, an expected 40% average allocation in portfolios, some investors expect they will focus more on investment grade corporate debt, securities debt, and green bonds next year. 

In alternatives, investors will slightly dial up portfolio allocations to 17% from 16%, and many expect that they will increase exposure to private debt, infrastructure, and private equity. 

As private assets continue to grow in significance in investor portfolios, institutional investors agree that they will play the role of a safe haven in the event of a correction, the report said. But other concerns remain for the asset class, such as liquidity risk and too much money chasing too few deals. 

About 500 institutional investors at corporate and public pension funds, endowments and foundations, and sovereign wealth funds were surveyed for the Natixis Investment Managers report in October and November. 

Respondents came from North America, Latin America, the United Kingdom, Europe, Asia, and the Middle East.

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