Market Value

Government Pension Fund Global (GPFG)

The market value of the GPFG equalled 8,018 billion Norwegian kroner at the end of June 2017. Investments in equities, fixed-income and unlisted real estate corresponded to 5,220 billion, 2,600 billion and 200 billion kroner, respectively, equivalent to a proportion of Fund assets of 65.1 percent, 32.4 percent and 2.5 percent.

GPFG Market Value Development May 1996 – 30 June 2017
NOK billion (lha) and per cent of GDP Mainland Norway (rha)

market value

Sources: Norges Bank, Thomson Reuters Datastream and the Ministry of Finance

In the first half of 2017, the market value of the GPFG increased by 511 billion kroner. The nominal return over the period accounted for 499 billion kroner, whilst changes in the Norwegian krone exchange rate entailed, when taken in isolation, an increase in the value of the Fund of about 51 billion kroner. In the first half of 2017, the state’s net cash flows from the petroleum activites were less than the oil-adjusted budget deficit, resulting in an outflow of capital from the Fund of 36 billion kroner.

Market value development since inception
Individual components

market value

Sources: Norges Bank and Ministry of Finance

At the end of June 2017, aggregate net cash flow from petroleum activities since inception amounted to 4,990 billion Norwegian kroner, whilst the total oil-adjusted budget deficit corresponded to 1,633 billion kroner. Total gross return (before the deduction of asset management costs) equalled 3,622 billion kroner, cf. graph above.

By way of the Fund being invested in other currencies than Norwegian kroner, its value measured in kroner is influenced by exchange rate fluctuations. The Norwegian krone has depreciated relative to the currency basket of the Fund over the said period, resulting in an increase in the market value in kroner of 1,076 billion. Changes in the Norwegian kroner exchange rate do not impact the development in the international purchasing power of the Fund. One must be prepared for exchange rates to fluctuate over time.