Volatile start of the year
The Government Pension Fund Global returned -1.5 percent, or -171 billion kroner, in the first quarter of 2018.
27 April 2018
Equity investments returned -2.2 percent. Unlisted real estate investments returned 2.5 percent, and fixed-income investments -0.4 percent. The overall return on the fund was 0.1 percentage point higher than the return on the benchmark index.
The quarter was coloured by increased volatility in global stock markets.
“The most important expression of the risk in the fund is that the strategic equity share is set to 70 percent. This means that fluctuations in the fund’s value are predominantly determined by the development in global stock markets”, says Yngve Slyngstad, CEO of Norges Bank Investment Management.
In the first quarter, 11 billion kroner was withdrawn from the fund. The krone appreciated against several of the main currencies during the quarter. This decreased the value of the fund by 183 billion kroner.
The fund had a market value of 8,124 billion kroner as at 31 March 2018, of which 66.2 percent were invested in equities, 2.7 percent in unlisted real estate and 31.2 percent in fixed income.
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