Norway to Include PE, Infrastructure; New Strategy Council

(October 6, 2010) — Norway’s Government Pension Fund Global, the world’s second largest, plans to expand its investments to incorporate infrastructure projects and private equity investments.

“The fund is well-placed to carry the risk and harvest the potential gains from investing in less liquid assets,” the fund stated in a report released yesterday with its 2011 budget, noting its strategy to protect returns on the money it manages for future generations.

The oil-based sovereign wealth fund’s plan to increase returns comes after a report commissioned by the Finance Ministry, which stated: “Further development will seek to diversify the risk further and increase the weight of investments that benefit from the Fund’s size, long-term perspective and ability to hold less liquid assets.”

Additionally, the $471 billion fund announced that it was forming a strategy council, which will publish its first report by December 1, 2010. “Such independent and critical reviews will provide useful professional input while fostering greater transparency and discussion about important issues related to the long-term investment strategy of the Fund,” Johnsen stated in a release. Elroy Dimson, an emeritus professor at the London Business School, will head the group.