, Columnist
Norway's $1 Trillion Wealth Fund Has a First-World Problem
The world's biggest SWF wants to cut back on the diversification of its fixed-income portfolio. It deserves a hearing, whatever the experts say.
The fund wants more freedom. It should be given it.
Photographer: Carina Johansen/BloombergThis article is for subscribers only.
It’s the very definition of a first-world problem, but Norway’s $1 trillion sovereign wealth fund is wrestling with whether to make its investment portfolio less diverse. It’s a subject that cuts to the heart of the “active manager versus passive index” debate.
As part of a long-running review, which will lift the fund’s equity allocation to 70 percent, the Norwegian government appointed a panel of outside experts to advise on how the bond portion should be invested.