Market Value

Government Pension Fund Global (GPFG)

The market value of the GPFG equalled 8,484 billion Norwegian kroner at the end of 2017. Investments in equities, fixed-income and unlisted real estate corresponded to 5,650 billion, 2,600 billion and 220 billion kroner, respectively, equivalent to a proportion of Fund assets of 66.6 percent, 30.8 percent and 2.6 percent.

GPFG Market Value Development May 1996 – 31 December 2017
NOK billion (lha) and per cent of GDP Mainland Norway (rha)

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

In 2017, the market value of the GPFG increased by 977 billion kroner. The nominal return over the period accounted for 1,028 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 15 billion kroner. In 2017, the state’s net cash flows from the petroleum activites were 167 billion kroner, while the oil-adjusted budget deficit corresponded to 228 billion kroner.

Market value development since inception
Individual components

Sources: Norges Bank and Ministry of Finance

At the end of 2017, aggregate net cash flow from petroleum activities since inception amounted to 5,068 billion Norwegian kroner, whilst the total oil-adjusted budget deficit corresponded to 1,736 billion kroner. Total gross return (before the deduction of asset management costs) equalled 4,151 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 1,040 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.