Norwegian oil fund dumps UK gilts Norges Bank Investment Management, which has $713bn of assets and is the biggest sovereign wealth fund in the world, said it sold down its holding in UK debt from 110bn Kroner (£12.9bn) at the end of 2011 to just 60bn Kroner at the end of 2012. The fund's annual report says: "Government bond investments were weighted according to the size of a country's economy rather than the size of its debt, reducing holdings of bonds from some of the most indebted countries." Yngve Slyngstad, chief executive of Norges Bank, said in an interview that the fund had made the adjustment as part of a "risk-reducing investment strategy." He added that the dollar, yen, euro and pound sterling were all currencies with "structural issues, with regards to government debt, to private sector debt, to unconventional monetary policy, and to growth and the demographic profile of the countries." The fund cuts its holdings in French government debt by a quarter and sold Spanish and Italian debt too but increased its investment in the US, Japan and Germany. It also quadrupled its investment in Australian sovereign debt and raised its exposure to debt issued in emerging-market currencies by 10pc from 0.4pc a year earlier. The fund invested in government bonds fro Taiwan, Russia and Turkey for the first time. Investments in Qatar, Kenya and Romania increased. However, the fund said the UK stockmarket accounted for 16pc of its equity investments - the second highest by country after America with 28pc. The UK is the second biggest destination for the fund's property investment with 13pc of the portfolio. Britain's biggest bank HSBC was the fund's best performing individual stock followed by America's Apple and the Swiss food company, Nestle. The worst performer was also British - BG Group, followed by two Spanish companies, Telefonica and Reposol. European investments accounted for less than half the fund's investment - down to 48pc at the end of 2012 from 53pc a year earlier. The fund said it aimed to reduce investments in Europe down to 40pc.