It’s the same old story in Der Spiegel, but it’s really the story: big funds with tons of cash can’t figure out where to invest. The answer for some of them is emerging market real estate. Though by that, they no longer mean CEE. Maybe some of our readers have suggestions for these guys.
As head of the Norwegian sovereign-wealth fund, Slyngstad collects his country’s oil revenues, which currently total more than €100 million — per day. The fund is supposed to use these revenues to provide the country with prosperity for the long term. It’s no easy task, because the government expects Slyngstad and his staff of more than 300 people to generate a 4 percent return on investment.
In the past, investment professionals would have dismissed this requirement as uninspiring. But times have changed. Between 1999 and 2007, the Norwegian sovereign-wealth fund achieved an average annual return of almost 6 percent, but since then it has slumped to only about 1 percent.
Read the whole story here.