OSLO, March 18 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)