The fund's total return

billion kroner

The Norwegian government first transferred capital to the fund in May 1996. By the end of the first half 2024, the fund has received a net inflow total of 4,886 billion kroner, while the fund's cumulative return was 10,070 billion kroner.

annualised return since 1998

The fund has generated a   of 6.30 percent between 1 January 1998 and the end of the first half 2024. The fund has outperformed the benchmark index set by the Ministry of Finance by 0.27 percentage point since 1998.

Yearly annual return since 1998

As at 30 June 2024

Percent

Chart

Combination chart with 2 data series.
The chart has 1 X axis displaying Time. Data ranges from 1998-12-31 00:00:00 to 2024-12-31 00:00:00.
The chart has 2 Y axes displaying values, and values.
End of interactive chart.

Annual return by asset class

As at 30 June 2024.

Percent

Chart

Bar chart with 4 data series.
The chart has 1 X axis displaying Time. Data ranges from 1998-12-31 00:00:00 to 2024-12-31 00:00:00.
The chart has 2 Y axes displaying values, and values.
End of interactive chart.

Return figures

Measured in the fund's currency basket. Percent

  First half 2024 2023  2022  2021 2020
Equity part of the fund's benchmark index 12.4 20.8 -15.3 20.0 11.7
The fund's equity investments 12.5 21.3 -15.4 20.8 12.1
Fixed-income part of the fund's benchmark index -0.8 5.6 -14.0 -1.9 6.8

 

Historical key figures

Annualised data

  Since 01.01.1998 Last 15 years Last 10 years Last 5 years Last 12 months2
Fund return (percent) 6.30 8.55 7.07 7.99 14.65
Relative return on fund (percentage points)1 0.27 0.42 0.23 0.42 0.02
           

Equity management - annualised

  Since 01.01.1999 Last 15 years Last 10 years Last 5 years Last 12 months1
Return on equity management (percent) 7.01 11.32 9.56 11.53 20.03
Return on equity management benchmark index (percent) 6.53 10.93 9.20 10.88 19.52
Relative return on equity management (percentage points) 0.48 0.39 0.36 0.65 0.50

Fixed-income management - annualised

  Since 01.01.1998 Last 15 years Last 10 years Last 5 years Last 12 months1
Return on fixed-income management (percent) 3.79 3.05 1.60 -0.18 3.15
Return on fixed-income management benchmark index (percent) 3.55 2.43 1.29 -0.82 2.73
Relative return on fixed-income management (percentage points) 0.24 0.62 0.31 0.64 0.42

Equity investments - annualised data*

  Since 01.01.1998 Last 15 years Last 10 years Last 5 years Last 12 months1
Return on fixed-income management (percent) 6.95 11.21 9.41 11.25 19.98
Return on fixed-income management benchmark index (percent) 6.53 10.93 9.20 10.88 19.49
Relative return on fixed-income management (percentage points) 0.42 0.28 0.21 0.37 0.49

Fixed-income investments - annualised data*

  Since 01.01.1998 Last 15 years Last 10 years Last 5 years Last 12 months1
Return on fixed-income investments (percent) 3.79 3.05 1.60 -0.18 3.15
Return on fixed-income benchmark index (percent) 3.54 2.42 1.26 -0.85 2.73
Relative return on fixed-income investments (percentage points) 0.25 0.63 0.34 0.67 0.42

Return on unlisted real estate, funding return, and other return series

Measured in the fund's currency basket. Percent

  First half 2024 2023 2022
Return unlisted real estate -0.50 -12.37 0.07
Funding benchmark 3.47 9.72 -14.54
Return difference funding benchmark -3.97 -22.08 14.61

Property returns measured against MSCI Property Index

Measured in local currency. Percent

  2023 2022 2021 2020 2019 2018
Property return1 -12.1 -0.4 13.4 0.8 6.9 7.9
MSCI Global Annual Property Index1 -3.9 4.0 13.2 2.6 7.0 7.7
Weighted MSCI Annual Property Index1,2 -7.1 1.7 14.1 2.1 6.2 7.3

Relative return

Relative return is a measure of how well the fund's investments perform compared to the return of the benchmark index set by the Ministry of Finance. In the first half 2024, the fund's relative return was -0.04 percentage point, equivalent to -5 billion kroner. The fund has outperformed the benchmark index by 0.27 percentage point since 1998.

Annual relative return and accumulated annualised relative return

Calculations based on aggregated equity and fixed-income investments until end of 2016. As at 30 June 2024.

Percentage points

Chart

Combination chart with 2 data series.
The chart has 1 X axis displaying Time. Data ranges from 1998-12-31 00:00:00 to 2024-12-31 00:00:00.
The chart has 2 Y axes displaying values, and values.
End of interactive chart.

Historic relative return

Annualised figures measured in the fund's currency basket. In percentage points as at 30 June 2024

1 Based on aggregated equity and fixed-income investments until end of 2016.
2 The fund's information ratio (IR) is the ratio of the fund's average monthly relative return to the fund's tracking error. The IR indicates how much relative return has been achieved per unit of relative risk.
  Since 01.01.1998 Last 15 years Last 10 years Last 5 years Last 12 months
Relative return on fund (percentage points)1 0.27 0.42 0.23 0.42 0.02
The fund's tracking error (percentage points)1 0.64 0.44 0.41 0.45 0.28
The fund's information ratio (IR)1,2 0.44 0.89 0.53 0.83 0.01

Relative return by management area

In percentage percentage points as at 30 June 2024

1 Includes real estate management from 2017. The fund's relative return prior to 2017 is calculated on equity and fixed-income management only.
2 Measured against actual funding from 2017. The relative return on equity and fixed-income management before 2017 is measured against the respective Ministry of Finance asset class indices.
3 The relative return on the fund and fixed-income management for 2021 have been adjusted by 0.01 percentage point as a result of an update of the return on the benchmark index.

 
Year Fund1 Equity management2 Fixed-income management2 Real estate management2 Infrastructure management
1H 2024 -0.04 0.31 0.14 -5.05 -14.87
2023 -0.18 0.38 0.51 -10.51 -5.67

Cost-adjusted relative return

The fund’s relative return after management costs can be compared with the investment performance that could theoretically be expected to be achieved with a passive index management strategy.

A passive investment strategy would aim at replicating a benchmark following set rules. The estimated relative return of a passive strategy is dependent on various estimated cost components. The return adjustments made are management costs of a passive strategy, revenues from securities lending, transaction costs related to replication of the benchmark index, and transaction costs related to inflows and extraordinary benchmark changes.

Management costs of a passive strategy

The estimated management costs for a passive management strategy are based on the fund’s actual management costs for each year, where costs related to active management strategies have been subtracted.

Revenues from securities lending

Unlike a theoretical index, but similar to an actively managed portfolio, a passive index portfolio would also be expected to generate income from securities lending activities. In this analysis, actual revenues from securities lending have been used, consistent with the financial reporting for the fund

Transaction costs related to replication of the benchmark index

Changes in the equity and bond indices, such as company inclusions and periodic index re-weightings, would trigger transactions in the portfolio and subsequent costs. These index replication costs are estimates based on models and not on realised costs, and are therefore uncertain in nature. 

Transaction costs related to inflows and extraordinary benchmark changes

These costs are estimated costs related to the phasing-in of new capital into the fund, costs related to the set rules for rebalancing of the asset allocation in the benchmark, and transition costs related to rule changes for the benchmark. The broad benchmark indices for equity and fixed-income investments set by the Ministry of Finance are used as the underlying indices. The costs related to inflows, rebalancing and index transition costs are estimates based on standard market assumptions about trading costs and not actual realised costs, and are therefore uncertain in nature.

The fund's relative return after management costs

In percentage points as at 31 December 2023. Annualised.

  Since 01.01.1998 Last 5 years Last 12 months
The fund's relative return before management costs 0.28 0.42 -0.18
The fund's management costs1 0.08 0.05 0.05
The fund's relative return after management costs 0.20 0.38 -0.23
1 The fund's management costs exlude costs related to unlisted real estate prior to 2017.

Estimated relative return of a passive strategy

In percentage points as at 31 December 2023.

  Since 01.01.1998 Last 5 years Last 12 months
Management costs of a passive strategy -0.04 -0.02 -0.02
Revenues from securities lending 0.05 0.04 0.03
Transaction costs related to replication of the benchmark index -0.03 -0.02 -0.02
Transaction costs related to inflows and extraordinary benchmark changes -0.04 -0.02 -0.02
Estimated relative return of a passive strategy -0.06 -0.02 -0.03

Cost-adjusted relative return comparison

In percentage points as at 31 December 2023.

  Since 01.01.1998 Last 5 years Last 12 months
The fund's relative return after management costs 0.20 0.38 -0.23
Estimated relative return of a passive strategy -0.06 -0.02 -0.03
Estimated relative return difference 0.26 0.40 -0.20

The fund's management costs are driven by the fund's underlying management areas. A breakdown of the 2023 management costs and relative returns after management cost by management areas is found in the below table.  

Relative return by management area after management costs

In percentage points as at 31 December 2023.

  The fund's relative return after management costs Equity management Fixed income management Real Estate management Infrastructure management
Before management costs -0.18 0.38 0.51 -10.51 -5.67
Management costs1 0.05 0.05 0.02 0.06 0.40
After management costs -0.23 0.32 0.48 -10.58 -6.07
1 Management cost as a proportion of asset under management.

The benchmark index is made up of global equity and bond indices. Hence, the funds estimated management costs of replicating the funds’ benchmarks are only relevant for the equity and bond indices. A breakdown of the 2023 estimated management costs of the equity and bond indices is found in the below table.

Estimated relative return of a passive strategy. Equity and fixed-income investments.

In percentage points as at 31 December 2023.

  Equity management Fixed income management
Management costs of a passive strategy1 -0.02 -0.02
Revenues from securities lending 0.04 0.02
Transaction costs related to replication of the benchmark index -0.01 -0.03
Transaction costs related to inflows and extraordinary benchmark changes -0.03 -0.01
Estimated relative return of a passive strategy -0.02 -0.04
1 The estimated management cost of a passive strategy is based on replicating the funds' equity and fixed income benchmarks. As unlisted real estate and infrastructure investments is funded by investing less in equities and bonds, the fund is not fully invested in the the equity and fixed income benchmarks. However, the estimated cost of replicating the equity and fixed income benchmarks provides a good cost estimate of a passive strategy.

Cost-adjusted relative return comparison. Equity and fixed-income management areas

In percentage points as at 31 December 2023.

  Equity management Fixed-income management
Relative return after management costs 0.32 0.48
Estimated relative return of a passive strategy -0.02 -0.04
Estimated relative return difference 0.34 0.53

Investment outlook

With a large, global fund and a 70 percent allocation to equities, we have to be prepared for considerable fluctuations in the fund’s return and market value. See the factors that may affect the fund and the markets in which we invest

Returns in international currency

The fund invests in international securities in foreign currency. The fund’s returns are generally measured in international currency – a weighted composition of the currencies in the fund’s reference indices for equities and bonds. This is known as the fund’s currency basket and consisted of 35 currencies at the end of the first half 2024. Unless otherwise stated, results are measured in this currency basket.

Relative and risk-adjusted return

In decomposing the fund's relative return and risk-adjusted return we distinguish between the terms equity investments and equity management. Equity investments is the total holding of listed stocks measured against the strategic equity benchmark from the Ministry of Finance. Equity management is our holding of listed stock excluding listed real estate that is managed together with unlisted real estate in the overall real estate management, measured against a benchmark adjusted for funding of listed and unlisted real estate investments. The same goes for fixed income. 

Methodology for the calculations of returns

The methodology for calculating returns on the funds managed by Norges Bank Investment Management is based on the international standard Global Investment Performance Standards (GIPS®). This is GIPS reports and the GIPS compliance manual, including formulae for calculating returns.