Yngve Slyngstad, president of the National penjonsfond abroad – the so-called oil fund.
Norwegian oil fund, formally called the Government Pension Fund abroad, gave a positive return of 1.3 percent, or 94 billion Norwegian kroner in the second quarter of 2016. According to a press release.
the equity portfolio produced a return of 0.7 percent, while fixed-income investments yielded a return of 2.5 percent. The overall yield was here 0.1 percentage point lower than the benchmark. Real estate investments yielded a return of minus 1.4 percent.
“After a period of relative calm the markets early in the quarter, led Brexit referendum in the UK to a case in Europe. The markets recovered relatively quickly again but with large sectoral differences. This was one slight return for finance, “says Trond Grande, deputy CEO of Norges Bank Investment Management, which manages the oil fund.
Interest rates in the developed markets fell in the second quarter, and especially after the referendum in the UK.
“Bond investments received a capital gain as a result of falling interest rates. in the long run, however, a negative for future returns on fixed-income investments,” says Trond Grande.
the Norwegian government picked during the second quarter of the 24 billion from the fund. The Norwegian krone weakened against major currencies during the quarter, which contributed to increasing the value of the fund by 28 billion.
Oil Fund had assets of 7.177 billion Norwegian kroner as of 30 June. These are divided into 59.6 per cent in equities, 37.4 percent fixed income and 3.1 percent in real estate.
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