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Health & Fitness

International Investing - Norway

The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surroundings – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside the United States that you might not usually hear about.

As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.

Norway

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Norway, and the Nordic area of the world in general, might be best known for the beautiful outdoor landscapes, rugged sports activities, and the “northern lights.” If your examination of Norway were to stop there, however, you would be missing out on several favorable trends that might make Norway an attractive option to your investment portfolio. Consistent growth rates that have out-performed many peers, especially since the financial crisis, have reaffirmed this possibility.

Some of the more prominent reasons to consider investing in Norway are some of the reasons why any market would be worth investing in. An unemployment rate of 3% is among the lowest in the developed world, the country has the 2nd highest GDP per capita, and the nation has control over the world’s larges sovereign wealth fund – Norwegian Government Pension Fund Global. Government incentives for R&D have helped develop world-class industries and firms in the oil, gas, and maritime technology sectors, as well as highly developed service offerings in finance and I.T. Productivity among the highest in the E.U., combined with a dedication to providing employees with a positive work-life balance contributes to high levels of employee satisfaction. Happy employees are more productive employees.

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When looking at investing in Norway, there are two primary ways to go about it – ADRs or direct purchases. An ADR is basically a certificate held by a U.S. banking institution that represents a certain number of shares in the foreign company, and is held by the U.S. institution. This helps to cut down on the administrative fees and other costs that would otherwise be incurred. For more direct exposure, you can also purchase shares directly from Norwegian stock exchanges if your broker offers those services to its retail investor base (you and me).

Some of the most popular firms that are available for investment via ADR are Aker Solutions (Construction & Materials), Algeta (Big Pharma), Eitzen Chemical (Chemicals), and of course Statoil, which is the 11th largest oil & gas company in the world. The most popular ETF for investing in Norway is the Global X FTSE Norway 30 ETF, which tracks the FTSE Norway 30 Index that encompasses the country’s largest companies.

As always, I have attached some links with more information

Happy Reading!

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