Strategies aim to delivery amid oil volatility

Sovereign wealth funds are mostly dependent on oil revenues for inflows and have had to cope with huge changes in the past year as the oil price rose then fell.

However, many are taking lower prices in their stride and appear confident in the strategies they have put in place to manage a sudden fall in the oil price.

Some funds, such as Norway’s Government Pension Fund Global, have built up such massive reserves that inflows, whether small or large, are merely a fraction of the size of the fund. Furthermore, the fund’s investments are highly diversified bonds and equities that help generate oil-independent revenues.