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.
- Marcus Ashworth
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…