Here is a striking story from Norwegian newspaper Aftenposten, telling how Norwegian government contradicts its investment strategies with aggresive attacks on tax havens - offshore destinations such as Cyprus, Bermuda and Caymans. Norway runs a $300 billion pension fund which consists of oil revenues. Despite the aggressive attack on tax-friendly environments, Norwegian fund managers robustly invest billions in companies situated on abovementioned offshore locations. Financially, the pension fund investment strategy is a good solution to combat demographic crisis, especially because investment strategy is based on the avoidance of macroeconomic risk which could raise its probability if investment strategy of the pension fund focused strongly locally without the diversification of investment and risk internationally.
If Norwegian socialist government really did what it says, then pension fund couldn't generate big returns from billions invested in high-growing and prosperous companies and funds situated offshore, which could endanger the sustainability of the Norwegian pension system.
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