8/22/2017, 10:54 AM (Source: TeleTrader)
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Stocks drive returns in Norway's sovereign fund

The Government Pension Fund Global, controlled by the central bank of Norway on behalf of the Ministry of Finance, returned 2.6% in the second quarter in international currency, compared to 3.78% in the first three months and 1.27% in the comparable period of last year. The report published on Tuesday revealed equity investments led the way with 3.37%, though the item came subdued compared to results from the previous three quarters. Still, stocks have returned only 0.66% in the second quarter of 2016.

The relative return on the fund 0.28 percentage points on the positive side, after just 0.09 in the three months through March and a negative print of 0.11 points one year earlier. Equities make up 65.1% of the facility, formerly known as the Government Petroleum Fund, while the share of fixed income is 32.4% and the rest is in unlisted real estate. The performance of Chinese stocks in the portfolio was the strongest, with growth at 7.7%, but their cut is only 2.9%. European equities, at 36.6% of the total, returned 6.3%.

The overall market value rose 1.94% in the quarter, to 2.02 trillion kroner ($255.4 billion). Norway withdrew 16 billion kroner, while the currency's appreciation took out another 32 billion kroner, the report adds. The investment vehicle is part of the Government Pension Fund.

Baha Breaking News (BBN) / IT