NORWAY - The local authority of Larvik has sold its shares in power companies Lardal og Larvik Everk and Vestfold Kraft in order to invest NOK800m (e99m) in the market and is now looking to outsource its domestic investments.
The fund has said that 40% of the Norwegian mandate tender, which will represent around half of the total fund, should be allocated to domestic bonds, with 30% in equity and the remainder placed in money market vehicles.

The local council has chosen the Oslo office of Swedish consultant Wassum to be responsible for the fund’s asset allocation strategy.

In an earlier decision on its overall investment strategy, the council decided to invest between 40 to 70% in fixed income, including up to 20% in money market instruments, and between 30 to 60% in equities.
Investment in Norwegian bonds and foreign bonds will both vary between 15 to 25% of the total.
Foreign equities will be favoured over Norwegian shares, with 20-40% of the fund’s equity portion invested overseas and 10-30% in the domestic market.