The Government Pension Fund Global, also called the Norwegian National Oil Fund, returned 15.9 percent in 2013, due principally to strong stock markets, the annual report shows.
Equity investments returned 26.3 percent, fixed-income investments produced a zero return, and real estate investments returned 11.8 percent. The return was 1.0 percentage point higher than on the benchmark indices the fund is measured against.
"The year's results were driven by equity investments," says Yngve Slyngstad,(photo) CEO of Norges Bank Investment Management, which manages the fund. "Despite various sources of uncertainty in the global economy, stock markets made broad gains in 2013."
The fund's market value grew by more than NOK 1 200 billion during the year to NOK 5 038 billion. The return for the year was NOK 692 billion, NOK 239 billion in new capital was transferred from the government, and a weaker krone increased the value of the fund in krone terms by NOK 291 billion.
"The fund made its first property purchases in the US in 2013," adds Slyngstad. "Investments in real estate will increase substantially in the coming years, and we have strengthened our organisation over the past year with this in mind."
By the end of 2013, the fund had received total transfers of NOK 3 302 billion and amassed a cumulative return of NOK 1 799 billion.
The fund's asset allocation was 61.7 percent equities, 37.3 percent fixed income and 1.0 percent real estate.