The Government Pension Fund Norway (GPFN), managed by Folketrygdfondet, made a profit of NOK 27bn in 2024, its annual results have revealed.

This corresponds to a return of 7.6 per cent, while capital totalled NOK 381bn at the end of the year. In total for 2024, the return was 1.15 percentage points higher than the benchmark index.

In addition to this, the results showed that the return on the equity portfolio was 9.3 per cent in 2024, 1 percentage point higher than the benchmark index for equities.

Meanwhile, the return on the fixed-income portfolio was 5.1 per cent in 2024, 1.5 percentage points higher than the benchmark index for interest rates.

Both the equity portfolio and the fixed income portfolio contributed 0.58 percentage points each to the excess return.

According to the results, the GPFN’s annual return has been 7.4 per cent since 2007. The active management has generated an excess return of 1 percentage point per year since 2007, corresponding to around NOK 60bn and more than 15 per cent of the fund's value.

The report also found that over the past 10 years, the return on the GPFN has been 7.5 per cent annually. The market value of the GPFN went from NOK 354bn in 2023 to NOK 381bn in 2024.

The GPFN returned -0.84 per cent in the fourth quarter of 2024.

Folketrygdfondet CEO, Kjetil Houg, said that 2024 was a “solid year” for the
fund, and it beat the market on both the equity and fixed income sides.

He said the fund was disciplined and stuck to its “well-known” strategies, as well as taking advantage of opportunities in the market to generate excess returns.  

In addition to this, the Nordic stock market delivered positive returns in 2024, with the Norwegian market leading the way in the Nordic region with an increase of 9.1 per cent.

Meanwhile, the Swedish market returned 8 per cent, the Finnish market returned 1.1 per cent and the Danish market had a decline of 5.3 per cent. The figures are measured in local currency.

"In 2024, Norway will be pulled up by companies such as Kongsberg Gruppen, Schibsted, DNB, Orkla and Storebrand. It shows that the Oslo Stock Exchange is far more than oil and gas," Houg stated.

In 2024, Folketrygdfondet, as an active owner, held 517 meetings with Norwegian and Nordic companies and issuers.

It also voted at 158 general meetings and 10 bondholders' meetings with eight insurers. Two meetings concerned restructuring, six meetings concerned loan agreement amendments, and two meetings concerned waivers of conditions.

In 2024, Folketrygdfondet was represented in 14 nomination committees in Norwegian companies and participated in one corporate assembly.

The report also showed that in 66 cases at general meetings in Norwegian, Danish, Finnish, and Swedish companies, the fund voted against the boards' proposals or abstained from voting in favour.

Houg said Folketrygdfondet’s ambition is to be a “responsible and predictable” owner and creditor that contributes to long-term value creation.

“We set clear requirements and expectations, and we find that good dialogue, nomination committee work, and voting have a positive impact on the companies we are invested in," Houg said.

---