Norway’s Government Pension Fund Global made a return of 3.3% in the second quarter this year, after rising stock markets helped it to a 4% return on equities.
The return is equal to NOK192bn (€23.4bn) over the quarter.
The fund, which is committed to a mandate of 65% equities, 35% fixed income and 5% property, has some 8,000 equity holdings globally. The rate of returnn on the fixed income investments was 2%, and on property 3%, the fund’s manager Norges Bank Investment Management reported.
Yngve Slyngstad, CEO of NBIM said: “Equity markets rose in the second quarter, and emerging markets performed best. Considerable liquidity flowed into the markets, which pushed asset prices up. We noted reduced volatility in the markets, but we have to be prepared for fluctuations in the fund’s value going forward.”
Weakness in NOK helped boost returns by NOK132bn, while an additional NOK44bn in new capital was transferred to the fund by Norway’s government, which is bound by law to invest earnings from the country’s oil and gas sector into the fund to help pay future social security and other liabilities.
The value of the fund as of 30 June was NOK5,478bn (€666.6bn), making it the world’s largest sovereign wealth fund.