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Norway's wealth fund's annualized return is only 6.6% since 1998. https://www.nbim.no/en/investments/returns https://www.nbim.no/en/investments/returns Is this
by PerryUlyssesCox 10mo ago
Norway's wealth fund's annualized return is only 6.6% since 1998. https://www.nbim.no/en/investments/returns https://www.nbim.no/en/investments/returns
Is this poor performance due to this kind of active management?
- cromka 10mo agoThey probably need to maintain fluidity at any given moment, given this is a retirement fund. So no crazy but risky returns in portfolio. And this issue here is likely also about risk mitigation.
- lovich 10mo agoPerhaps the people of Norway value certain behaviors over maximum returns
- embedding-shape 10mo agoNot sure if you're American, but investment funds in other countries, especially those with "hints of socialism" usually don't put "profit above all else" like is common in America, hence "good enough" is usually just that, good enough. Seems they're doing exactly what is expected of them, staying around the benchmark index, so that sounds pretty good: > The fund has outperformed the benchmark index set by the Ministry of Finance by 0.24 percentage point since 1998.
- ta12653421 10mo agohaha, LOL, OP talks nonsene: The 6.6% is actually quite good for such a hevicle!
- firefax 10mo ago"Only" 6%? Bonds (a safe investment) are usually at ~2%. A conservatively allocated growth fund doing 6% is pret-t-y good.
- PerryUlyssesCox 10mo agoSo bonds that have a negative return after inflation are a safe investment?
- thomassmith65 10mo agoThe higher the potential return, the higher the risk. Let's say Norway invested all the money into a wager on a football game, and they won, resulting in a 100% return. They'd be lucky, and they'd be idiots.