Norway’s Government Pension Fund Global (GPFG) returned -4.4 per cent in the third quarter of 2022, Norges Bank Investment Management (NBIM) has revealed.

NBIM, which is responsible for the investments of the GPFG, noted that this was equivalent to -NOK 449bn.

The fund’s returns on equity investments were -4.8 per cent, while its returns on fixed income investments were -3.9 per cent.

Investments in unlisted real estate returned -1.1 per cent.

The fund’s return in Q3 was 0.14 percentage points stronger that the return on the benchmark index.

“The third quarter has been characterised by rising interest rates, high inflation, and war in Europe,” commented NBIM deputy CEO, Trond Grande.

“This has also affected the markets. The return was negative for equities, fixed income, and unlisted real estate.”

The Norwegian krone depreciated somewhat against several major currencies in course of the quarter.

Currency movements contributed to an increase in the fund’s value of NOK 702bn.

In the third quarter, inflow into the fund amounted to NOK 306bn, with the fund having a value of NOK 12,216bn as at 30 September 2022.

More than two-thirds (68.3 per cent) of the fund was invested in equities, 28.5 per cent in fixed income, 3.1 per cent in unlisted real estate, and 0.1 per cent in unlisted renewable energy infrastructure.

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