Folketrygdfondet 2022: A NOK 15 billion fall in value, but beat the market

The Government Pension Fund Norway, which Folketrygdfondet manages, recorded a loss of NOK 15 billion in 2022. The return was -4.4 per cent. The capital amounted to NOK 318 billion at year-end.

The return of -4.4 per cent to the Government Pension Fund Norway (GPFN) was 0.7 percentage points better than the market return in 2022.

‘We have never before seen such a strong increase in interest rates in a single year. This is the result of a strong increase in inflation, among other things as a result of pressure on energy prices and a low unemployment rate. It is very unusual to see a negative return on both equities and fixed-income investments in the same year,’ says Kjetil Houg.

The return on the equities portfolio was -1.7 per cent. That is 1.1 percentage points better than the equities benchmark index. The return on the fixed-income portfolio was -8.9 per cent, which is 0.1 percentage points better than the fixed-income benchmark index.

‘We landed firmly on our feet in what was a demanding year. The return on the energy sector was high, and we managed to beat the market,’ says Kjetil Houg, CEO of Folketrygdfondet.

Since 2007, Folketrygdfondet’s active ownership has generated an excess return of NOK 43 billion for the public good.