Market Value

Government Pension Fund Global (GPFG)

The market value of the GPFG equalled 10,398 billion Norwegian kroner at the end of the first half of 2020. Investments in equities, fixed-income and unlisted real estate corresponded to about 7,230 billion, about 2,870 billion and almost 300 billion kroner, respectively, equivalent to a proportion of Fund assets of 69.6 percent, 27.6 percent and 2.8 percent.

GPFG Market Value Development May 1996 – 30 June 2020
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 2020, the market value of the GPFG increased by 314 billion kroner. The nominal return over the period accounted for -188 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 672 billion kroner. In the first half of 2020, the state’s net cash flows from the petroleum activites were -167 billion kroner.

Market value development since inception
Individual components

market value since inception
Sources: Norges Bank and Ministry of Finance

At the end of the first half of 2020, aggregate inflow of capital since inception amounted to 3,571 billion Norwegian kroner, whilst the aggregate outflow of capital corresponded to 354 billion kroner. Total gross return (before the deduction of asset management costs) equalled 5,170 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 2,062 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.