The managers of Norway’s $879B sovereign wealth fund, Norges Bank Investment Management, are thinking of holding back on big investments into property markets as they wait for a market correction.
"I have limited enthusiasm for the property market right now,” says Norges Bank CEO Yngve Slyngstad, adding that with “few buyers and just as many sellers” the time is right to just “sit on the fence.”
The move comes as Norges has been throwing more money into real estate, upping its investment to 3.1% of the fund’s holdings, with plans to expand to 5%, CoStar reports.
And that higher stake in property has kept Norges afloat in recent months, returning 10% (compared to the fund’s total 2.7% 2015 yield) and helping it recover from a disastrous Q3 showing. [CoStar]
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