Norwegian governor backs SWF rotation into higher-yielding equities and real estate
A bond allocation of 20–25% should be enough to hedge Norway's sovereign wealth fund against a fall in equity prices in the long run, according to Norges Bank governor Øystein Olsen, who also said yesterday it may make sense for the fund to increase its investment in real estate.
In his annual address to Norges Bank's supervisory council, Olsen said "low long-term interest rates will feed through into lower returns", meaning the Government Pension Fund Global (GPFG) – as the fund is known – will
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