Norway's wealth fund returns 25.6 pct in 2009

OSLO, March 5 (Reuters) - The return on Norway's sovereign wealth fund was 25.6 percent in 2009, the central bank said on Friday.

The 2009 return beat the benchmark portfolio set by the finance ministry by 4.1 percent.

The total return in 2009 was 613 billion Norwegian crowns ($103.4 billion), the bank said.

Norges Bank said the value of the Government Pension Fund -- Global rose to 2.640 trillion crowns in the fourth quarter from 2.549 trillion at the end of the third quarter.

"Developments in 2009 must, in the same way as 2008, to a large extent be viewed in light of the financial crisis," the central bank said in a statement.

The return on the fund in the fourth quarter was 3.2 percent in international currency terms, against 13.5 percent in the third quarter.

New transfers to the fund hit a five-year low of 169 billion crowns in 2009. 62 percent of the fund was allocated to stocks, unchanged from the end of the third quarter.

Commonly known as the "oil fund", it invests oil and gas money in foreign stocks and bonds to save for future generations when the petroleum runs out.

It is the world's second biggest sovereign wealth fund after that of the United Arab Emirates and Europe's biggest equity investor.

(Reporting by Oslo newsroom)