Equity investments returned 3.0 percent, unlisted real estate 0.8 percent, and fixed-income investments 3.1 percent. The overall return on the fund was 0.2 percentage point lower than the return on the reference index.

"We had a positive return on our fixed-income investments thanks to falling yields," says Trond Grande, Deputy CEO of Norges Bank Investment Management. "We now have more than 600 billion kroner in bonds with negative yields. That is equivalent to a quarter of our fixed-income portfolio, and in line with the markets."

Equity markets also delivered a positive return in a volatile quarter.

"Uncertainty about global trade and economic growth dampened returns early on, but markets rallied towards the end of the period, driven partly by the prospect of more expansionary monetary policy in developed markets," says Grande.

The krone appreciated against several of the main currencies during the quarter. All in all, currency movements decreased the value of the fund by 38 billion kroner. Inflows into the fund amounted to 6 billion kroner.

The fund had a market value of 9,162 billion kroner on 30 June 2019 and was invested 69.3 percent in equities, 2.7 percent in unlisted real estate and 28.0 percent in fixed income.

Quarterly report Government Pension Fund Global - 2Q 2019 (nbim.no)

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