Norwegian Wealth Fund: CEO warns of low returns

Norway's sovereign wealth fund, also known as Norges Bank Investment Management, with assets of $1.5 trillion, is preparing for a period of lacklustre market performance in the coming years. The fund's chief executive, Nicolai Tangen, warned in a statement at the World Economic Forum in Davos of low returns that could be affected by rising inflation.

In an interview with Bloomberg Television , Tangen said he was not overly optimistic about yields because there are underlying inflationary pressures that could persist for an extended period of time. He expects international central banks to be cautious in cutting rates to avoid weakening the economy too quickly.

"We are not overly optimistic about yields. There are more underlying inflationary pressures and I think they will stay there for a longer period of time. I think international central banks will be very, very cautious about cutting rates too quickly because they have been too slow in raising them."

Norges Bank CEO Nicolai Tangen

The…