Sovereign Wealth Fund Returns Collapse As Yield Disappears

Sovereign wealth fund returns are collapsing as yield disappears so managers are looking elsewhere. Sovereign wealth funds have become somewhat of a status symbol for countries around the world and no fund is larger than that of Norway. Norway’s $960 billion sovereign wealth fund was set up in 1998 and invests the Norwegian state’s proceeds from oil and gas production for future generations. The total annual return targeted by the fund is 4% but according to Reuters, investment returns have consistently missed this target with an average net real return on investment of 3.78% since inception. As Asset Management Industry…