Norwegian sovereign fund in selloff of London-listed stocks

Norway's sovereign wealth fund has embarked on a major selloff of its holdings in London-listed companies, even as Rachel Reeves hailed "a new golden age" for the City.

Sky News has learnt that Norges Bank Investment Management (NBIM), the $2 trillion fund which invests revenues generated from the country's oil and gas resources, has begun offloading its stakes in a large number of small-cap and mid-sized companies quoted on the London Stock Exchange.

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City sources said that "scores" of companies had been included in the selloff, with several institutional investment groups having seen specific NBIM asset management mandates curtailed in recent weeks.

The disposal plan comes with the FTSE-100, London's blue-chip index, having surged to a string of record highs despite growing geopolitical volatility.

On Monday, the chancellor said reforms aimed at making its easier and cheaper to float in London

"Two years ago, some said the City's best days were behind it. They were wrong," she claimed.

"We have taken a significant step forward today and I look forward to continuing to work closely with everyone here to ensure that our capital markets remain world-leading.

"As the FTSE 100 reaches record highs and global firms once again choose London, we are seeing the first signs of a new golden age for the City."

When approached for comment in December, a spokesperson for NBIM said it had not reduced its exposure to the UK, although when pressed again last week, the fund declined to comment on its sale of UK equity holdings.

The Norwegian fund's selloff of UK-listed companies is thought not to have affected its holdings in larger businesses quoted on the London market.

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