Norway fund says to maintain 4 pct return target
OSLO, March 18 |
OSLO, March 18 (Reuters) - Norway's sovereign wealth fund, Europe's largest equity investor, will maintain its target of a 4-percent real return on assets despite low bond yields, its chief said on Friday.
"In total it's sensible to stick to a target of 4 percent annual real return over time," Yngve Slyngstad told a news conference after presenting the fund's results for the fourth quarter and 2010.
Since the fund's inception in 1998 the fund's average real return has been 3.1 percent.
"Return on the fixed income portfolio is lagging the target of four percent real return," Slyngstad added. "But high volatility and the uncertainties we've seen should result in a higher return on equities."
"Over the last ten years we've seen two major financial crisis. Seen in that context we're not so far behind the target (of four percent average annual real return)," Slyngstad said.
(Reporting by Oslo newsroom)
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