Norway’s GPFG Returned -2.5% in 2011
Norway’s Government Pension Fund Global (GPFG) returned -2.5% in 2011. This was mostly attributable to global stock market declines. Norway’s GPFG returned -8.8% in equities, while fixed income returned 7%. The sovereign wealth fund had exposure to government bonds from the United States, United Kingdom, and Germany which proved to be beneficial in 2011. With the rising price of oil, capital inflows to the sovereign wealth fund totaled to 271 billion kroner, biggest since 2008.
According to Norway’s GPFG CEO Yngve Slyngstad, the sovereign wealth fund now holds 2.25% of the total European equity market.
Other interesting notes include assets under management by external managers reduced down to 4.4% of assets (145 billion kroner) in 2011. Norway’s SWF made a major push into real estate in 2011. The fund held interests in 114 buildings in London and Paris at year-end.
End of Year Allocation
- 58.7% Equities
- 41% Fixed Income
- 0.3% Real Estate