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World's Largest Fund Will Increase Its Real Estate Investments By $17B


Norway’s finance industry says its $850B sovereign wealth fund—the largest in the world—should raise its limit on real estate investments to 7% from 5%, while separating real estate out from its overall portfolio.

Still, the government warned against getting too close to that threshold, Bloomberg reports, in order to avoid breaching the limit and having to liquidate holdings—should the value of its other investments suddenly drop.

The sovereign wealth fund has been lobbying Norway’s government for some time now to expand its types of investment. In 2010 the fund was first allowed to put 5% of its assets into real estate, and has since built a high-brow $28B portfolio around the world. [Bloomberg]