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First half-year 2022: The oil price and interest rate increase affected the result

The Government Pension Fund Norway, which Folketrygdfondet manages, saw a loss of NOK 17.8 billion in the first six months of 2022. The return was minus 5.4 per cent, which was 0.5 percentage points better than the market. The capital amounted to NOK 315 billion at the end of the period.

‘This was a weak result for the portfolio, but the high oil price meant that the Norwegian equity market performed better than the global stock markets. We are pleased that our investment choices helped us achieve a better return than the market,’ says Kjetil Houg, CEO of Folketrygdfondet.

The return on the equity portfolio was minus 4.4 per cent as of 30 June 2022. That is 1.1 percentage points higher than the benchmark index for equities. The return on the fixed-income portfolio was minus 7.3 per cent, which was 0.3 percentage points lower than the benchmark index for fixed income investments.

‘Because of the strong interest rate increase, this is the weakest half-year for the fixed income portfolio in the Government Pension Fund Norway’s history. This is due to an unusual increase in inflation and interest rates,’ says Kjetil Houg.

Since 2007, Folketrygdfondet’s active management has resulted in NOK 42 billion in excess return for the Norwegian people.