Norwegian Government Pension Fund–Global, Oslo, returned 11.1% on its investments in 2005, boosting total assets to 1.4 trillion kroner ($207.4 billion) and surpassing the California Public Employees' Retirement System, Sacramento, which had $200.9 billion in assets as of Dec. 31, to become the third largest pool of assets globally at the end of last year. The largest funds as of Dec. 31 were Japan's Government Pension Investment Fund, Tokyo, with $1.06 trillion in assets as of March 31, and Stichting Pensioenfonds ABP, Heerlen, Netherlands, with €190.7 billion ($231 billion) in assets.
The Norwegian fund's 383 billion kroner increase for 2005 includes a 220 billion kroner government transfer of surplus capital from high oil prices in the past year, according to its annual report, released today. Norway is the world's third largest exporter of oil behind Saudi Arabia and Russia.
Investment returns accounted for another 127 billion kroner of the increase, and currency movements added 36 billion kroner to the portfolio, which is 40% in equities and 60% in bonds, mostly in overseas markets. Equities returned 22.5%, and bonds returned 3.8%, according to the report. At least 60% of the equities portfolio and 90% of the bonds portfolio are managed internally by Norges Bank Investment Management.