Market Value

Government Pension Fund Global (GPFG)

The market value of the GPFG equalled 7,507 billion Norwegian kroner at the end of 2016. Investments in equities, fixed-income and real estate corresponded to 4,700 billion, 2,600 billion and 240 billion kroner, respectively, equivalent to a proportion of Fund assets of 62.5 percent, 34.3 percent and 3.2 percent

GPFG Market Value Development May 1996 – 31 December 2016
NOK billion (lha) and per cent of GDP Mainland Norway (rha)

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

In 2016, the market value of the GPFG increased by 36 billion kroner. The nominal return over the period accounted for 447 billion kroner, whilst changes in the Norwegian krone exchange rate entailed, when taken in isolation, a decrease in the value of the Fund of about 306 billion kroner. In 2016, the state’s net cash flows from the petroleum activites were for the first time since 1996 less than the oil-adjusted budget deficit, resulting in an outflow of capital from the Fund of 101 billion kroner.

Market value development since inception
Individual components

Sources: Norges Bank and Ministry of Finance

At the end of 2016, aggregate net cash flow from petroleum activities since inception amounted to 4,901 billion Norwegian kroner, whilst the total oil-adjusted budget deficit corresponded to 1,507 billion kroner. Total gross return (before the deduction of asset management costs) equalled 3,123 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 1,025 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.