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.”