Long-term investors have nowhere to run?

The world's largest sovereign fund has "nowhere to run" as long-term investors, warning of the threat of inflation.

The world's largest sovereign fund, Norges Bank Investment Management Co., warned that global financial markets may be weak for a long time, and inflation may be the most significant challenge in the future and the biggest potential problem facing the fund. After achieving an average return of 6% in the past 25 years, The world's largest holder of listed stocks is bracing for a "decade of low returns" ahead.

A surge in prices could have far more serious consequences than is currently widely expected. As long-term investors, we don't have that many options. In the face of inflation, we have nowhere to run.

The extent to which environmental, social and corporate governance (ESG) is affecting companies' prospects is "now starting to show", and those that don't adapt to the new environment will have a much harder time.