Stock Market Growth Fueled by Recovery and Central Bank Action Bring Norway SWF into the Light

Posted on 10/15/2020

In the third quarter of 2020, Norway Government Pension Fund Global returned 4.3%, equivalent to 412 billion kroner. The fund is managed by Norges Bank Investment Management (NBIM). The return on the sovereign fund’s equity investment was 5.7%. Investments in unlisted real estate returned 0.9%, whereas the fixed income investments returned 1.1%. The fund’s overall return was 3 basis points lower than the return on the benchmark index.

“The financial markets were still influenced by uncertainty related to the Corona virus. Regardless, equity markets returned well, mostly due to strong performance in the technology sector in US”, says CEO of Norges Bank Investment Management Nicolai Tangen in a press release.

According to the press release, “The positive return came after a negative return of -3.4 percent in the first half of 2020.

The krone appreciated against several of the main currencies during the quarter. The currency movements contributed to a decrease in the fund’s value of 97 billion kroner. In the third quarter of the year, 105 billion kroner was withdrawn from the fund.”

Norway Government Pension Fund Global had a value of 10,610 billion kroner as at September 30, 2020, of which 70.7% was invested in equities, 2.7% in unlisted real estate, and 26.6% in fixed income.

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