Positive equity return in a volatile market
15 October 2020
The return on the fund’s equity investment was 5.7 percent. Investments in unlisted real estate returned 0.9 percent, whereas the fixed income investments returned 1.1 percent. The fund’s overall return was 3 basis points lower than the return on the benchmark index.
“The financial markets were still influenced by uncertainty related to the Corona virus. Regardless, equity markets returned well, mostly due to strong performance in the technology sector in US”, says CEO of Norges Bank Investment Management Nicolai Tangen.
The positive return came after a negative return of -3.4 percent in the first half of 2020.
The krone appreciated against several of the main currencies during the quarter. The currency movements contributed to a decrease in the fund’s value of 97 billion kroner. In the third quarter of the year, 105 billion kroner was withdrawn from the fund.
The fund had a value of 10,610 billion kroner as at 30 September 2020, of which 70.7 percent was invested in equities, 2.7 percent in unlisted real estate, and 26.6 percent in fixed income.
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