OSLO--Norway's sovereign-wealth fund, the world's biggest,
returned 7.6% on its investments in 2014, as all asset classes
contributed positively, and increased its purchases of real
estate.
Norges Bank Investment Management, the arm of the central bank
that manages the fund, said Friday that the gain equated to 544
billion Norwegian kroner ($66.84 billion). The total value of the
fund at Dec. 31 was NOK6.431 trillion.
Equity investments returned 7.9% in 2014, while fixed-income
investments gained 6.9%, NBIM said.
"2014 was a good year for the fund, with positive results for
all asset classes," said Yngve Slyngstad, chief executive of NBIM.
"Strong stock markets in the first half of the year and falling
yields made a positive contribution to the results."
The management said the oil fund, also known as the Government
Pension Fund Global, had increased its holding in bonds issued by
Japan, Spain and the U.K., and decreased its holding of those of
Canada, the U.S. and Germany.
The fund held 61.3% in equities, 36.5% in fixed-income assets
and 2.2% in real estate at the end of the year.
"Never before have we made as many property investments as we
did last year, and we will continue to step up these investments in
the coming years," said Mr. Slyngstad.
The oil fund was set up in the 1990s to convert Norway's vast
oil wealth to global financial assets, partly to shield the
country's budget from oil-price fluctuations. The fund has expanded
more than tenfold in the past decade and is expected to be worth
NOK7.532 trillion by 2020.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
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