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5/3, 12:13 PM (Source: TeleTrader)
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Norwegian reserve fund posts record returns

The market value of the Government Pension Fund Global was 8.94 trillion kroner ($1.03 trillion) at the end of March, a rise of 10% year over year, said Norges Bank Investment Management, which controls it on behalf of Norway's Ministry of Finance. The report released on Friday showed returns before management costs were 9.1% in currency basket terms in the first quarter, a third-best result ever, after a loss of 8.3% in the three months through December. The krone-denominated figure came in at 738 billion, the highest mark so far.

The growth in returns was mostly driven by equity investments – 12.2%, while unlisted real estate and fixed income lagged. The sector accounted for 69.2% of investments, compared to 66.3% at year-end and one year before.

"As a major equity investor we must be prepared for large fluctuations in the fund’s market value in line with developments in global stock markets," NBIM's chief executive Yngve Slyngstad said. The rise in the value of the krone chipped off the equivalent of 60 billion kroner from the total in the first quarter, data showed. Inflows were eight billion kroner.

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