Asset mix
Real estate investments
The fund was given a mandate in March 2010 to invest as much as 5 percent of its assets in real estate outside Norway, reducing its share of fixed-income investments correspondingly. Real estate investments will be funded with capital from the fixed-income portfolio.
Real estate investments shall take place over time and be spread over different types of sectors, properties and securities in European countries except Norway. The fund shall mainly invest in unlisted real estate, well-developed markets and traditional property types.
A real estate investment is defined as the right to land and buildings on land, not fundamental infrastructure such as roads, railways, airports and harbours. The fund may invest in property, equity and interest-bearing instruments issued by listed or non-listed companies, fund structures and other enterprises focused on buying, developing, managing or financing real estate. It may also invest in derivatives that are naturally linked to real estate instruments.
European benchmark index
The real estate portfolio will be benchmarked against a European property index supplied by Investment Property Databank (IPD). The index measures property performance across 15 European countries. These are Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom. The fund’s benchmark may over time expand to include other countries in the IPD’s global property index, such as Australia, Canada, Japan, Korea, New Zealand, South Africa and the United States.
