Economics
Biggest Wealth Fund Urged to Embrace Infrastructure Risks
- Norway fund should invest 5% in infrastructure: IEEFA report
- With risks handled, best performers reach returns of 12%-15%
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Norway needs to overcome its risk aversion and allow the country’s $900 billion sovereign wealth fund to invest in unlisted infrastructure, including renewable energy projects, according to a new report.
The fund should be freed to invest 5 percent of its capital in such assets, which the investor itself has lobbied for, the Institute for Energy Economics and Financial Analysis said in a report. Based on the experience from the best-managed investors in the industry, returns could be 12 percent to 15 percent annually, according to the report.