Norway's sovereign wealth fund accused of 'pretend divestment'

The world’s richest sovereign wealth fund has sunk more money into coal just three months after a high-profile pledge to dump fossil fuels as part of its commitment to responsible investing, according to financial analysis by three environmental groups.

Sovereign wealth funds just keep getting bigger

The aggregate assets of the world’s sovereign wealth funds rose 11% through 2010 to $3.8 trillion according to a report by Prequin. Whether grand totals like that make much sense, of course, is another matter. The funds are not managed as an aggregated total and each pursues its own strategy. Management risk profiles and investment strategies vary hugely.

However, there appear to be clear signs that having committed a fair number of high profile blunders over the last few years in their search for higher yield, funds have, in general, become better at investing. According to Sam Meakin, managing editor of the 2011 Prequin Sovereign Wealth Fund Review, that 11% increase in AUM through 2010 was largely down to returns on investment