Norwegian reserve fund returns most since 2013

Tuesday, 27. February 2018 11:28

The market value of the Government Pension Fund Global was 8.49 trillion kroner at the end of last year, a rise of 13% year over year, said Norges Bank Investment Management, which controls it on behalf of Norway's Ministry of Finance. The annual report released on Tuesday showed returns before management costs were 13.7% in currency basket terms, where the rate was only below 2013 and 2009. The krone-denominated figure came in just above one trillion, translating to $131 billion.

The growth in returns was mostly driven by equity investments – 19.4%, while unlisted real estate and fixed income lagged. The sector accounted for two thirds of investments, compared to the 70% target and 62.47% one year before. In 2016, stocks returned only 8.7%. Norway held only 2.6% in unlisted real estate at the end of last year. China and India brought the biggest windfall in stocks, while technology was in the lead sector-wise.

Chairman Oystein Olsen highlighted the overall performance for beating the benchmark index by 0.7 percentage points. Depreciation bolstered the oil fund's value by 15 billion kroner. Net withdrawals accounted for 61 billion kroner.

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