Article | Last updated: 07/10/2019 | Ministry of Finance
Over the last 20 years, the average annual nominal return on the GPFG has been 5.6 percent as measured in the currency basket of the Fund. The nominal return net of asset management costs and inflation (net real return) is in the said period calculated at 3.6 percent.
The nominal return on the Fund was 10.9 percent in the first half of 2019 as measured in the currency basket of the Fund. The return on the equity portfolio was 15.6 percent, whilst the fixed-income portfolio delivered a return of 6.0 percent. The unlisted real estate investments returned 2.5 percent, cf. figure below.
Fund performance in the first half of 2019
Measured in international currency
The return on the equity and fixed-income portfolio is measured against a benchmark index set by the Ministry. All in all, Norges Bank achieved a return 0.03 percentage point lower than the return on the benchmark index in the first half of 2019. Both the equity and bond investments delivered higher returns than the benchmark index. The manager performance must be assessed over time. Norges Bank has achieved an average annual gross excess return of 0.24 percentage point over the last 20 years, cf. table below for more details. Gross excess return is considered to be a reasonable measure of net value added in the operational management of the Fund, cf. Report on the Fund for 2015, chapter 7.