Norway global fund's investments return 13% in 2012, assets swell to $669 billion

Norway's Government Pension Fund Global, Oslo, returned 13% on investments in the year ended Dec. 31, according to a news release from the 3.816 trillion Norwegian kroner ($669 billion) sovereign wealth fund.

The fund's equity investments returned 18.1%, while fixed income returned 6.7% and real estate investments returned 5.8%.

The fund's allocation was 61.2% equities, 38.1% fixed income and 0.7% real estate.

Among the changes in strategies for the fund in 2012 was a higher allocation to emerging markets debt and equity holdings, with European holdings accounting for 48% of the fund at the end of 2012, down from 53%.

“The change in strategy is the most substantial since the increase in the fund's equity allocation to 60%. While in 2011, the fund invested 150 billion kroner of the year's capital transfers in European equities, in 2012, the fund invested nearly an equivalent amount in emerging bond markets,” said Yngve Slyngstad, CEO of Norges Bank Investment Management, the fund's manager, in a news release.