The oil fund’s value rose by almost NOK 2,000 billion in the first quarter. The return was over six per cent, particularly driven by technology shares.
Over the past 16 months, Oljefondet’s manager Nicolai Tangen has been able to enjoy constantly new records. The fund has risen from just over NOK 12,000 billion to over NOK 17,000 billion. Photo: Fredrik Varfjell / NTBPublished:
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In the first quarter of 2024, the fund received a return of NOK 1,210 billion, or 6.3 percent, according to a melding.
– Equity investments had a very good return in the quarter, particularly driven by the technology sector, says Deputy Chairman Trond Grande at Norges Bank Investment Management.
The fund was worth NOK 17,719 billion at the end of March this year. Since then, the value has decreased somewhat, according to the unofficial counter on the fund’s website.
This is an increase of 1.954 billion since the New Year. At the turn of the year, the fund was worth NOK 15,765 billion, after the highest ever return of NOK 2,222 billion last year.
The fund did 0.1 percentage points worse than the so-called benchmark index against which it is measured. The fund had an excess return on shares and interest, but a weak return on property dragged down the result.
The oil fund only presents complete reports every six months. For the first and third quarters, the fund only provides relatively short updates.
Facts about the result:
The oil fund, formally called the Government Pension Fund abroad, had a return of 6.3 per cent or NOK 1,210 billion in the first quarter of 2024.
This was the return on the various parts of the fund in the first quarter:
- equity investments: 9.1 percent
- interest-bearing investments: minus 0.4 per cent
- unlisted property: minus 0.5 per cent
- unlisted infrastructure for renewable energy: minus 11.4 percent
This is how the assets were distributed at the end of the first quarter:
- shares: 72.1 per cent
- interest-bearing securities: 26 percent
- properties that are not listed on the stock exchange: 1.8 percent
- unlisted renewable energy infrastructure: 0.1 percent
Sea view
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Weak krone lifted the value
The krone value of the Norwegian savings is affected by developments in the stock and interest markets, changes in the krone exchange rate and the supply of fresh oil and gas kroner from the government.
The krone exchange rate weakened against several major currencies in the first quarter. Seen in isolation, this contributed to increasing the fund’s value by NOK 647 billion.
The government added NOK 96 billion to the fund in the first quarter.
This is the fund’s ownership in pure values at the end of the first quarter:
- equity investments: NOK 12,779 billion
- interest-bearing investments: DKK 4,608 billion
- unlisted property: NOK 315 billion
- unlisted infrastructure for renewable energy: NOK 16 billion
Strong rise
The fund’s krone value has passed a number of milestones over the past year or so:
The fund’s total return since it was started in the 1990s is now NOK 9,803 billion, while the government’s total supply of capital to the fund is NOK 5,551 billion, opplyser Norges Bank Investment Management.
The fund has increased by NOK 3,122 billion in value due to fluctuations in the krone exchange rate, the administration states.
NOK 72 billion has been spent on management fees since inception.
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