US tech stocks boost Norwegian sovereign wealth fund’s Q3 returns

On the 10/16/20 at 7:50AM


Tuba Raqshan

The Government Pension Fund Global (GPFG) saw a 4.3% return, corresponding to NOK 412bn (€37.56bn) in the third quarter of 2020.
Credit: NBIM

The GPFG’s positive return comes after a negative return of -3.4% in the first half of 2020. The financial markets were still influenced by uncertainty related to the Corona virus, said Nicolai Tangen, the new CEO of the Norges Bank Investment Management, which oversees the €1trn sovereign wealth fund. “Regardless, equity markets returned well, mostly due to strong performance in the technology sector in US,” said Tangen.

The Norwegian sovereign wealth fund’s overall return was 3 basis points lower than the return on the benchmark index. The fund’s equity investment returned 5.7%, while its unlisted real estate portfolio returned 0.9% returns. Fixed-income investments returned 1.1%.

The market value of the fund increased by NOK 210bn (€19.14bn) to NOK 10,610bn (€967.24bn), during this quarter, with 70.7% allocation in equities, 26.6% in fixed income and 2.8% in unlisted real estate.

The Norwegian krone appreciated against several of the main currencies, contributing to a decrease in the fund’s value of NOK 97bn (€8.84bn). During this quarter, NOK 105bn (€9.57bn) was withdrawn from the fund.