The return on the equity portfolio was 7.0 per cent, while the bond portfolio showed a negative return of -1.3 per cent. The high return on the equity portfolio reflects the general advances in major stock markets, particularly in Asia.

The return in the second quarter was 0.18 percentage point higher than the return on the benchmark portfolio defined by the Ministry of Finance. The outperformance is primarily due to the good results achieved by external active equity managers and seasonal factors associated with the payment of dividends.

Measured in NOK, the return on the Government Petroleum Fund was 1.6 per cent. The lower return measured in NOK reflects the appreciation of the krone in relation to the currency basket. However, it is the return measured in terms of this currency basket (2.0 per cent) that provides an indication of the international purchasing power of the Fund, so it is appropriate to use this figure when measuring the return.

Measured in terms of the Petroleum Fund's currency basket, the return in the first half of 1999 was 5.0 per cent, or 0.16 percentage point higher than the return on the benchmark portfolio.

NOK 8 billion was transferred to the Petroleum Fund's international equity and bond portfolios on 30 June, bringing the total market value of the Fund's securities portfolio to NOK 182.7 billion.