Exposure to European equities hindered returns at Norway's Government Pension Fund Global, Oslo, for the quarter ended Sept. 30, while U.S. stocks emerged as the top performer.
Overall, the fund returned 0.1% in the three months ended Sept. 30, according to a financial update. Equities, to which the fund is 61.4% invested, returned -0.5%. Europe, which represented 43.6% of the fund's equity investments at the end of the quarter, was the weakest-performing region, returning -4.3%.
North American stocks, which make up 33% of the equity portfolio, returned 3.4%, while investments in Asia and Australia/New Zealand returned 2.3% and accounted for 7.5% of the equity portfolio. Emerging markets returned 2.1% and accounted for 9.8% of equity investments.
A spokesman for the fund's money manager, Norges Bank Investment Management, said the allocations to European equities are not changing.
The fund has a 37.3% allocation to fixed income, which returned 0.9% for the quarter. Both fixed income and equities allocations underperformed their benchmark indexes by 50 basis points.
The fund is also has 1.3% of its assets invested in real estate, which returned 1.5%.