Government Pension Fund Norway surpasses NOK 450 billion
Folketrygdfondet delivered a return of 9.7 per cent in the Government Pension Fund Norway (GPFN), equivalent to NOK 40.1 billion, and invested capital was NOK 453.7 billion in the first quarter of 2026. The Government Fund Tromsø (GFT) recorded a return of -10.4 per cent, corresponding to a loss of NOK 1.6 billion, and invested capital of NOK 13.9 billion at the end of the quarter.
“The first quarter was characterised by a significant rise in oil prices, which lifted the Oslo Stock Exchange substantially. This contributed to strong absolute performance for GPFN, but we underperformed the market. For GFT, we delivered a negative result due to a decline in Nordic small caps, but still outperformed the market,” says Kjetil Houg, CEO of Folketrygdfondet.
Government Pension Fund Norway
The Government Pension Fund Norway achieved a return of 9.7 per cent and a relative return of -0.62 percentage points in the first quarter. The equity portfolio rose by 16.5 per cent and contributed -1.05 percentage points to relative return. The fixed-income portfolio declined by 1.2 per cent but contributed 0.04 percentage points to relative return. The remaining 0.01 percentage points came from derivative strategies and asset class allocation.
“Within the equity portfolio, Norwegian heavyweights in the energy and industrial sectors drove a strong increase. Developments in the fixed-income portfolio were marked by a repricing of long-term interest rates in response to higher inflation expectations. We are leaving behind a challenging quarter for our active management, but we are prepared for fluctuations over time,” says Houg.
Since 2007, active management has generated an excess return of 0.95 percentage points per year. This corresponds to around NOK 74 billion, or more than 16 per cent of the fund’s value. Excluding compound interest, the corresponding figure is NOK 34 billion.
Government Fund Tromsø
The Government Fund of Tromsø recorded a return of -10.4 per cent and a relative return of 0.20 percentage points in the first quarter.
“During the quarter, Nordic small caps delivered a much weaker return than the main index, which is unusual. We take a long-term approach to management and are pleased to have outperformed the market for the second consecutive quarter since the fund’s establishment,” says Houg.