Government Pension Fund-Global, Oslo, returned a record high 13.5% on investments as a result of surging worldwide stock market values in the quarter ended Sept. 30, said Yngve Slyngstad, fund CEO.
Year-to-date, the 2.549 trillion Norwegian kroner ($453.3 billion) fund returned 21.8%.
The fund's equity portfolio returned 17.7% in the quarter, while bonds rose 7.2%.
The fund outperformed its custom benchmark by 1.5 percentage points in the third quarter and by 3.4 percentage points in the first three quarters of 2009. The fund lagged its benchmark by 3.4 percentage points in the year ended Dec. 31, largely from poor relative performance in bonds.
That was reversed in the most recent quarter, with bonds topping their benchmark by 3.3 percentage points. Equities outperformed by 0.2 percentage points. Bond performance was aided by the return of liquidity to the market, something that won't continue to deliver returns in the future, Mr. Slyngstad said.
Assets were also boosted by inflows of 49 billion kroner in the third quarter.
