Strong stock returns
The Government Pension Fund Global returned 5.0 percent, or 228 billion kroner, in the third quarter of 2013.
Equity investments returned 7.6 percent and fixed-income investments 0.3 percent. The return on these investments was 0.1 percentage point higher than the return on the benchmark indices. Investments in real estate returned 4.1 percent.
"Stock market returns in the third quarter were driven mainly by continued economic recovery in developed markets," says Yngve Slyngstad, CEO of Norges Bank Investment Management (NBIM), the fund's manager. "The negative trend in emerging markets continued into the quarter, but higher economic activity in China led a rebound towards the end of the period. Fixed-income investments continue to perform relatively poorly."
The krone weakened against many of the main currencies during the quarter, which increased the fund's value by 31 billion kroner, and new capital of 58 billion kroner was transferred to the fund from the government.
The fund had a market value of 4,714 billion kroner on 30 September, of which 63.6 percent was invested in equities, 35.5 percent in fixed income and 0.9 percent in real estate.
Quarterly report, Q3 2013 (NBIM)
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