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The world’s largest fund calling for urgent reforms in European capital markets including harmonized taxes, not sure that the US continent and the Asian continent to fall into competition.
The $ 1.9tn of Norway Oil Fund is the largest owner of European properties, owning average 2.5 percent of each listed company on the continent.
But the european equities of the total assets fall from 26 percent to 15 percent of the last decade, mostly because of this fallen competition compared to US stock markets and some Asian bours.
“A good functioning market in Europe is very important for us ..
This week’s fund will send an answer to the European Commission on Consultation on Participate in capital marketsthat argues it should be more ambitious and talk to deeper structural problems that hurt the continent and in many national markets.
“We share anxiety that European markets have fallen in terms of dynamic business and the provision of new investment opportunities to investors in the institution,” the letter.
“Key obstacles include laws of national securities, corporate laws, and insolvary refencies varies with entire member states.”
The fund, whose biggest European hold includes SAP, ASML, Novo Nordisk, Nestlé and UBS, listed places where you want to see the action.
It includes fewer national differences in securities and corporate laws and railroads in total Europe; harmonization of tax regimes, especially in tax control; and streamling the debt release.
It says liquidity for European equities should be adjusted by competition and innovation, non-regulation, and that handling should be united at a European level.
Norwegian politicians cut the relative of European funds and proudly the US allocation in 2012, but it remained “overweight” on the continent.
However, funding executives say a larger factor in leaking investments in European structure issues such as slightly listed regional companies.
Performance related to a single issue is another issue. The US has now participated in the account for 40 percent of its assets, compared to 21 percent in a decade ago.
“We have seen over the last years that the number of European companies that we’ve been able to invest in has dropped, and also the relative aum (assets under management)
European technology companies like the Spotify and cluple listed in the US, while groups like Linde’s holdings, CRH and Args and arms and arms move their lists in recent years.
The count of European companies owned by funding falls in a quarter of the past decade to 1,546.
Data imagining with Aditi Bhandari
