Norway Wealth Fund CEO Warns Days of High Returns Are Over
- World’s top wealth fund returned 14.5% on tech, financials
- CEO says return prospects limited by low rates, high stocks
Nicolai Tangen, chief executive officer of Norges Bank Investment Management, right, and Oystein Olsen, governor of Norway's central bank, before a news conference presenting the annual results of the sovereign wealth fund in Oslo, Norway, on Thursday, Jan. 27, 2022.
Photographer: Fredrik Solstad/BloombergNorway’s $1.3 trillion sovereign wealth fund, the world’s biggest, is reaching the pinnacle of the returns that can be expected, according to Chief Executive Officer Nicolai Tangen.
A return of 14.5% last year, equivalent to about $176 billion, was the highest in three years and just beat the fund’s own benchmark. The fund grew mainly thanks to gains in technology and banking stocks on record pandemic stimulus. Speaking to journalists in Oslo after the announcement, Tangen warned an era of lower returns is ahead.