09:44 – 18. aug. | Updated 10:12
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The Government Pension Fund Global lost NOK 188 billion during the first six months of the year. This corresponds to a return of minus 3.4 per cent in the first half of the year. Norges Bank Investment Management announced this on Tuesday.
During the first two quarters of the year, the Petroleum Fund lost 6.8 per cent in return on equity investments. For unlisted real estate, the fund received a return of minus 1.6 per cent, while for fixed income investments it actually received a return of 5.1 per cent.
Large fluctuations
– There were large fluctuations in the stock market during the period. The year started optimistically, but the mood in the market changed abruptly when the coronavirus began to spread globally. However, the sharp fall in the stock market in the first quarter was slowed down by a massive monetary and fiscal policy response, says Trond Grande, Deputy Head of Norges Bank Investment Management.
In the first quarter, the fund lost as much as NOK 1,350 billion. But thanks to many stimulus packages and a gradual reopening of society, the Petroleum Fund was able to recover much of what it lost in the second quarter when it received a return of NOK 1,162 billion. NOK 167 billion was also withdrawn during the first half of the year.
At the end of June this year, the Petroleum Fund had a value of NOK 10,400 billion. Of this, 69.6 per cent was invested in shares, 2.8 per cent was invested in unlisted real estate and 27.6 per cent was in fixed income securities.
A weak krone has also been a factor in the oil fund’s recoil. According to Norges Bank Investment Management, a weaker krone exchange rate contributed to increasing the fund’s value by NOK 672 billion.
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