Higher share prices, lower bond prices
The Government Pension Fund Global returned 0.1 percent, or 17 billion kroner, in the second quarter of 2013.
Equity investments returned 0.9 percent and fixed-income investments -1.4 percent. The return on these investments was 0.3 percentage point higher than the return on the benchmark indices. Investments in real estate returned 3.9 percent.
"Equity returns were boosted by strong markets in the US and Japan, while emerging markets pulled in the other direction," says Yngve Slyngstad, CEO of Norges Bank Investment Management (NBIM), the fund's manager. "Fixed-income returns were undermined by a rise in global yields."
NBIM strives constantly to improve and strengthen its active ownership work to promote good governance at the companies in which the fund invests. A new Corporate Governance Advisory Board was therefore set up in the second quarter.
The advisory board will provide important support for NBIM's long-term ownership work. As an active owner, NBIM aims to contribute to good corporate governance and high standards of social and environmental performance at the companies the fund invests in.
"Our ownership strategies will support the management of the fund and safeguard the growing value for future generations", says Slyngstad.
The krone weakened against many of the main currencies during the quarter, which increased the fund's value by 139 billion kroner. New capital of 58 billion kroner was transferred to the fund from the government.
The fund had a market value of 4,397 billion kroner on 30 June, of which 63.4 percent was invested in equities, 35.7 percent in fixed income and 0.9 percent in real estate.
Thomas Sevang, Team Manager Communications & External Relations NBIM,
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