Stronger equity performance
The Government Pension Fund Global returned 3.3 percent, or 192 billion kroner, in the second quarter of 2014.
Equity investments returned 4.0 percent, and fixed-income investments 2.0 percent. The return on these investments was 0.1 percentage point lower than the return on the benchmark indices. Investments in real estate returned 3.0 percent.
"Equity markets rose in the second quarter, and emerging markets performed best," says Yngve Slyngstad, CEO of Norges Bank Investment Management, the fund's manager. "Considerable liquidity flowed into the markets, which pushed asset prices up. We noted reduced volatility in the markets, but we have to be prepared for fluctuations in the fund's value going forward".
The krone weakened against many of the main currencies during the quarter, which increased the fund's value by 132 billion kroner, and new capital of 44 billion kroner was transferred to the fund from the government.
The fund had a market value of 5,478 billion kroner on 30 June, of which 61.3 percent was invested in equities, 37.6 percent in fixed income and 1.2 percent in real estate.
Quarterly report Q2 2014 (Norges Bank Investment Management)
Thomas Sevang, Head of Communications and External Relations
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