According to figures by Watson Wyatt at the end of 2000, 34% of total pension fund assets were invested in equities. The total exposure to domestic stocks represented 12% of pension assets, with 22% of investments going into foreign stocks. Euroland countries and other European countries attracted most of the assets in the foreign equity portfolio, followed by investments in US stocks.
Some suggest that due to market underperformance and shrinking reserves, the total percentage invested in equities by some pension funds could have dropped to around 20% in the past few months, although the national average would still remain close to the figure registered at the end of 2000.
On the fixed income side, domestic bonds accounted for 27% of total assets. The proportion invested in foreign bonds was also high, amounting to 19% of total investments. The total exposure from the average Norwegian pension fund to bonds represented 41% of the portfolio.
Real estate attracted around 12% of pensions assets and cash instruments and other investments 8%.
No comments yet