OSLO, March 7 Norway's domestic state pension
fund Folketrygdfondet said its 2016 return increased to 7.1
percent from 7.0 percent in 2015, increasing the market value to
212.3 billion Norwegian crowns ($25.12 billion).
* "Improved outlook for the global economy, rise in oil
prices and record high salmon prices ensured solid results for
the year," Folketrygdfondet's Chief Executive Olaug Svarva said
* The fund says the return beat the market by 1.2 percent.
* Says there are significant challenges in the salmon
industry, problem with salmon lice is the main risk in its
investments in salmon farming companies.
($1 = 8.4503 Norwegian crowns)
(Reporting by Camilla Knudsen, editing by Ole Petter Skonnord)