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Norway’s Government Pension Fund Global notches record quarterly return

Yngve Slyngstad
Yngve Slyngstad

Government Pension Fund Global, Oslo, Norway, achieved its highest ever quarterly return in the three months ended March 31, gaining 5.3% or 401 billion Norwegian kroner ($50.1 billion).

Weakened Norwegian currency vs. other currencies during the quarter increased the fund’s value by 175 billion Norwegian kroner, and the fund was also bolstered by a 5 billion kroner transfer of capital from the Norwegian government, a financial update said.

The return for year ended March 31 was 11.4%.

Returns pushed the market value to 7 trillion Norwegian kroner, a 9% increase from Dec. 31, and up 37.2% from March 31, 2014.

The fund was invested 62.5% in equities, which returned 7.5% over the three months ended March 31. It had a 35.3% allocation to fixed income, which gained 1.6% over the period, and the remainder was invested in real estate, which returned 3.1%.

“There were big price movements in the European market,” said Yngve Slyngstad, CEO of Norges Bank Investment Management, the money manager for the fund, in a statement accompanying the financial update. “After a weak return on European stocks last year, the market rallied in the first quarter.”