Fund Performance

Government Pension Fund Norway (GPFN)

The GPFN generated a nominal rate of return of 7.1 percent in of 2016, as measured in Norwegian kroner and before the deduction of asset management costs. The equity and fixed-income portfolios produced an aggregate return of 10.5 percent and 2.2 percent, respectively.

Fund Performance in 2016
Measured in Norwegian kroner

Sources: Folketrygdfondet and Ministry of Finance

The return on the GPFN is measured against a benchmark index set by the Ministry of Finance. In 2016, Folketrygdfondet generated a return 1.17 percentage points higher than that of the benchmark index. Both the equity and bond portfolio delivered positive excess returns. The manager performance must be assessed over time. Folketrygdfondet has delivered an average annual gross excess return of 0.56 percentage points from January 1998 to end 2016. Average annual gross return on the GPFN is in the said period calculated at 7.3 percent. The corresponding net real return is calculated at 5.1 percent, cf. table below for more details. Gross excess return is considered a reasonable measure of net value added in the operational management of the Fund, cf. Report on the Fund for 2015, chapter 7.

Sources: Folketrygdfondet and Ministry of Finance