Norway Government Pension Fund Global Generated 14.5% Return for 2021
Posted on 01/27/2022
In 2021, the Norway Government Pension Fund Global returned 14.5%, equivalent to 1,580 billion kroner. The return on the fund’s equity investments was 20.8%, the return on the fixed-income investments was -1.9%, whereas investments in unlisted real estate returned 13.6%. The return on unlisted renewable energy infrastructure was 4.2%.
The fund’s return was 0.74 percentage points higher than the return on the benchmark index, equivalent to 76 billion kroner.
“The good results are mainly due to very strong developments in the equity market throughout the year. There was good return in all sectors, but the investments in technology and financials performed particularly well. The investments in technology returned an impressive 30.2 percent”, says CEO of Norges Bank Investment Management Nicolai Tangen in the press release.
Real estate also performed positively in 2021, after a demanding year in 2020 due to the pandemic.
In 2021, 129 billion kroner was withdrawn from the sovereign wealth fund.
The fund had a value of 12,340 billion kroner as at 31 December 2021. 72.0% of the fund was invested in equities, 25.4% in fixed income, 2.5% in unlisted real estate, and 0.1% in unlisted renewable energy infrastructure.
