$815B Fund May Invest More In Real Estate
Norway’s checking out whether to let its $815B sovereign wealth fund (the largest in the world) throw more cash into equity—and more in real estate—to get more back in returns.
Svenska Handelsbanken senior economist Knut Anton Mark, along with Sigbjoern Johnsen and Kristin Halvorsen, are leading the committee reviewing whether to go beyond 60% in equity investments. They're expected to put out a report on the decision by Oct. 15.
The fund, run by Norges Investment Bank Management, is just squeaking up to its 4% net return goal, as rock bottom oil prices are squeezing the country’s income thin, and Q3 2015 saw the fund's biggest loss in four years, Bloomberg reports.
Norges itself just called for more leeway in equity investment—but the review committee won’t necessarily recommend an increase, even if it does advise a change in fund management. [Bloomberg]
