| Sovereign wealth funds are known for their long-term investment horizon and preference toward harvesting the illiquidity premium. Many wealth funds are engaged in co-investments and direct investments such as the Abu Dhabi Investment Authority (ADIA) and Singapore's GIC Private Limited.
However, some sovereign funds are restricted to a smaller universe of asset classes. What if Norway's sovereign wealth fund were able to generate the returns of the Yale Investment Office. How big would the sovereign wealth fund be today? Norway's Government Pension Fund Global (GPFG) has major allocations to fixed income and equities and a sliver to overseas institutional real estate. The Yale endowment model is copied by a plethora of sovereign funds, endowments and pensions, focusing on a high allocation to illiquid investments...............................................Full Article: Source
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