World’s Biggest Wealth Fund Sees Backing to Expand Mandate - Bloomberg

World’s Biggest Wealth Fund Sees Backing to Expand Mandate - Bloomberg:

"Norway’s $820 billion sovereign wealth fund, the world’s largest, is closer to getting the go ahead to expand into more asset classes as it struggles to meet return targets.

Investing in pipelines, roads and other infrastructure would be a good fit for the wealth fund as the government considers ways to get more out of the investor, Prime Minister Erna Solberg said yesterday in an interview in Oslo.

The 52-year-old Conservative Party leader is reviewing how the fund is managed after taking office in October. Built from oil and gas revenue, the fund has missed a 4 percent return target over the past decade, in part as financial market turmoil that started in the U.S. and spread to Europe led to record investment losses.

Broadening the mandate to infrastructure is “part of the discussion that we will have,” Solberg said. “The most important part is that we have security in our investments. We should do it conservatively and without much risk-taking.”"

'via Blog this'