NORWAY -The US$328bn Government Pension Fund - Global may significantly increase its equity allocation, according to Knut Kjær, the head of Norges Bank Investment Management (NBIM), which manages the portfolio.
It comes after a white paper earlier in the year when the government decided to increase allocation to the sector.
As a result, Kjaer said the fund may raise its international equity portfolio allocation from 40% to 60%.
Speaking at a conference hosted by Dutch pension scheme ABP, Kjær explained that equities were crucial to long term investment for pension funds.
Despite this, he said the decision to invest in equities had received widespread criticism from the media in Norway.
Nevertheless, he said people should: “learn to live with volatility and accept it”.
Kjaer's comments come after he recently resigned as head of NBIM.
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