Norway to Cut Small Emerging Market Stocks From Wealth Fund

Norway is removing small companies in emerging markets from the investment universe of its $1.7 trillion sovereign wealth fund to allow the investor to focus its responsible management efforts more effectively.

Norges Bank Investment Management will see the number of companies in its benchmark equity index reduced by about 22% to roughly 5,700, the government said in a white paper Thursday. That represents less than 1% of the market value for the index, it said, adding that most of the companies that will be cut are Chinese, Indian and Taiwanese.