The Government Pension Fund is a long-term savings plan and capable of riding out large swings in the markets, said Svein Gjedrem, the governor of the Norges Bank.

Gjedrem said that the fund was prepared to retain ownership of its illiquid investments until they mature in a few years time. He said that unless the economic outlook went from bad to considerably worse, the fund would record a substantial excess return in years ahead from holding onto assets that the market has priced down due to a