Stocks drive returns in Norway's sovereign fund

Tuesday, 22. August 2017 10:54

The Government Pension Fund Global, controlled by the central bank of Norway on behalf of the Ministry of Finance, returned 2.6% in the second quarter in international currency, compared to 3.78% in the first three months and 1.27% in the comparable period of last year. The report published on Tuesday revealed equity investments led the way with 3.37%, though the item came subdued compared to results from the previous three quarters. Still, stocks have returned only 0.66% in the second quarter of 2016.

The relative return on the fund 0.28 percentage points on the positive side, after just 0.09 in the three months through March and a negative print of 0.11 points one year earlier. Equities make up 65.1% of the facility, formerly known as the Government Petroleum Fund, while the share of fixed income is 32.4% and the rest is in unlisted real estate. The performance of Chinese stocks in the portfolio was the strongest, with growth at 7.7%, but their cut is only 2.9%. European equities, at 36.6% of the total, returned 6.3%.

The overall market value rose 1.94% in the quarter, to 2.02 trillion kroner ($255.4 billion). Norway withdrew 16 billion kroner, while the currency's appreciation took out another 32 billion kroner, the report adds. The investment vehicle is part of the Government Pension Fund.

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