Norges Bank Investment Management, manager of the Government Pension Fund Global, the sovereign wealth fund of Norway, reported Wednesday a 5.8% return for the third quarter of the year, just 6 basis points below its benchmark.
Fund assets rose to 20,440 billion kroner ($2.037 trillion) at the end of September, up 854 billion kroner from the prior quarter. Appreciation of the kroner against other currencies resulted in a 259-billion-kroner decline in the value of the fund.
In a statement, Trond Grande, NBIM’s deputy CEO, attributed performance in the quarter to strong equity returns, particularly in the basic materials, telecommunications and financial sectors.
For the fund, equities returned 7.7%, fixed income returned 1.4%, unlisted real estate returned 1.1%, and unlisted energy infrastructure returned 0.3%.
As of the end of September, the fund allocated 71.2% of its assets to equities, 26.6% to fixed income, 1.8% to unlisted real estate, and 0.4% to a portfolio of unlisted renewable energy infrastructure, which includes wind and solar farms.
The fund has reported an 8.54% annualized return over the past 10 years and an annualized 6.59% return since inception in 1998.
In March, NBIM reappointed CEO Nicolai Tangen to another five-year term.
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Tags: Government Pension Fund Global, Norges Bank Invesment Management, Norway