Norway's SWF faces lower returns as bond yields decline
Oslo
NORWAY'S sovereign wealth fund (SWF), the world's largest, faces diminishing returns due to low bond yields and should reduce its fixed-income portfolio in favour of real assets, its central bank governor said on Thursday.
The US$860 billion fund, built up from oil and gas income, is now worth twice as much as Norway's non-oil GDP. But measured in relation to the economy, its size has probably peaked, years earlier than expected, as oil income falls and budget spending increases.
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