Last year, the Pension Fund of Norway managed to earn a record amount from the stock market volatility.
The fund’s report said that revenue had amounted to almost NKr 1.7 trillion. The total increase in profitability was equal to 20%. The absolute indicator has become the largest in history. The ratio has turned out to be the second largest. The largest relative increase was recorded in 1998.
In 2018, the fund lost 485 million krone. The loss was recorded for the first time in 7 years. Over the past 10 years, the average annual income of the structure from investing has amounted to almost 8%. If you deduct management costs and inflation, then the figure is 6%.
Last year, investments in stocks showed a 26% yield. Investment in fixed-income assets and real estate amounted to 7.5%. Investments in stocks accounted for 71% of the total portfolio. 26% was invested in bonds, 3% – in real estate.
The Government Pension Fund of Norway started to work in 1990. It is managed by the investment division of the Central Bank. The main direction of investment is foreign assets. Thus, it is possible to avoid the effect on internal inflation.
Last year, the government contributed NKr 18 billion to the fund. The total value of its assets is 10.4 trillion krone, which is approximately 1.1 trillion US dollars. The fund owns approximately 1.5% of all shares in the world, having shares in 9 thousand companies. Securities of Apple, Microsoft, Alphabet, Nestle and Amazon are the largest shares in the portfolio.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group