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The rise in the stock market helps Nicolai Tangen to present figures showing a positive return for the third quarter.
FRESCO: Nicolai Tangen presents his first quarterly report as head of the Petroleum Fund.
Gisle oddstad
Published:,
The case is being updated …
The Government Pension Fund Global, better known as the Petroleum Fund, returned 4.3% in the third quarter of 2020, corresponding to NOK 412 billion.
– Financial markets continued to be characterized by uncertainty related to the coronavirus. However, the stock markets posted good returns in the quarter. In particular, the recovery was driven by American technology companies, Norwegian Petroleum Fund manager Nicolai Tangen says in a statement.
Increase in action
The fund’s return on equity investments was 5.7 percent. Investments in unlisted real estate received a return of 0.9 percent, while the return on fixed-income investments was 1.1 percent.
The fund’s performance was 3 basis points lower than the benchmark’s performance, meaning that the performance was 0.03 percentage points weaker than the target set by the Ministry of Finance.
The fund’s rise in the third quarter came after a decline of minus 3.4 percent in the first half of 2020.
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The strengthened crown
The koruna exchange rate strengthened against several of the major currencies during the quarter. Currency movements helped reduce the fund’s value by NOK 97 billion. In the third quarter, NOK 105 billion was withdrawn from the fund.
The market value of the fund increased by NOK 210 billion to NOK 10.610 billion at the end of the quarter.
70.7% of the fund was invested in shares, 2.7% in unlisted real estate investments and 26.6% in fixed income investments.
Tangen took office on September 1, when Yngve Slyngstad resigned after 12 years as head of Norway’s money depository. This means that Tangen was manager for one of the three months of the quarter, while Slyngstad had primary responsibility for the remaining two months.
