– I have a laser focus on my job

On Tuesday, the management of Nbim (Norges Bank Investment Management) presented the result for the Oil Fund in 2022.

The bottom line was a negative return of 14.1 per cent, and minus NOK 1,637 billion.

It is the second weakest return, and the biggest loss in kroner, ever.

– I don’t believe in excuses, but it really wasn’t easy to make money last year, says oil fund manager Nicolai Tangen.

“Everything” went down

Tangen explains that almost everything the oil fund invests in fell in value last year.

Last year was characterized by very turbulent stock markets, geopolitical unrest, sky-high inflation and rising interest rates. All negative for the oil fund, which at the time of writing has a market value of over NOK 13,400 billion.

– The only thing we did that went up were energy companies due to the increase in oil and energy prices. We made some money there, but otherwise it was pretty small.

Deputy chairman of the Oil Fund, Trond Grande, explains that several measures were taken to limit the loss. Among other things, a less risky portfolio.

– We did a good deal which made the loss 0.9 percentage points smaller than it would otherwise have been if we had not tried to make some moves in the portfolio, says Grande

“Speed ​​is a mindset”

Tuesday was the third time Tangen presented the Oil Fund’s results, since he got the job in 2020.

And when he has to present the result for the last time, he probably has a full overview.

In his own office, Tangen has hung up a digital board. It shows how many days he has left in the chair of one of the world’s largest funds.

– I don’t have it because I not like my job, but because I love my job, says Tangen.

Tangen has been employed on a fixed-term basis as senior manager at Nbim for five years.

He says that the countdown gives him more speed into the work, and reminds him that he is sitting on borrowed time.

– When I sit in the office and people say: but can’t we do it next week or the week after? Then I say we can’t, because look at the clock, I have 942 days left, says Tangen.

And although none of the people he is boss of have the same time pressure, he believes it is a sensible approach.

– My motto is that speed is a mindset, and I think it’s important to feel that time is passing and that we don’t have all the time in the world to do what we have to do. I think that is healthy for everyone to think about.

Laser focus on the job

– And do you have the plan ready when the 900 and some days are over?

– I have a laser focus on my job, and I have no plans for anything else, assures Tangen.

But for now, he is worried about the future. This is despite the fact that inflation appears to be subdued in several places in the world, and central banks are progressing more slowly in raising interest rates.

– We are only a month into the year, and I thought that there are many reasons to be worried, so we have not taken any victory in advance here.

– This could get messy in the future as well, says the oil fund manager.