Norges Bank

Press release

11.1 per cent return on the Government Pension Fund - Global in 2005

In 2005, the return on the Government Pension Fund - Global was 11.1 per cent measured in international currency and 14.3 per cent measured in NOK. The return on the equity portfolio was 22.5 per cent, whereas the return on the fixed income portfolio was 3.8 per cent. During the last three years, the total return on the Fund has been 32.6 per cent, equivalent to approximately NOK 300 billion. The high return is mainly attributable to a sharp rise in equity prices.

For the period 1997 to 2005, the Fund's average annual real return was 4.5 per cent after deductions for management costs.

In 2005, Norges Bank achieved a return that was 1.10 percentage point higher than the return on the benchmark portfolio defined by the Ministry of Finance. This is the eighth consecutive year since equities were introduced into the portfolio in 1998 that Norges Bank has outperformed the benchmark. The average annual excess return has been 0.52 per cent. The total excess return has been more than NOK 26 billion.

The market value of the Fund at the end of 2005 was NOK 1 399 billion. The value increased by NOK 383 billion during the year, NOK 220 billion of which reflected transfers of new capital from the Ministry of Finance. The return measured in international currency is equivalent to NOK 127 billion. A weaker krone in relation to the investment currencies increased the value of the Fund, measured in NOK, by NOK 36 billion during the year. The krone exchange rate has no effect, however, on future international purchasing power.

For further information, please contact:
Knut Kjær, Executive Director, Norges Bank Investment Management, Tel. +47 22 31 60 00.

The Annual Report is available in Norwegian and English on

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Press telephone: +47 21 49 09 30

Published 28 February 2006 10:00