Norway’s Government Pension Fund Global (GPFG) returned -14.2 per cent in 2022, Norges Bank Investment Management (NBIM) has revealed.

This is equivalent to NOK 1,637bn of losses, bringing the fund’s value to NOK 12,429bn, as at 31 December 2022.

Over two thirds (69.8 per cent) of the fund is invested in equities, 27.5 per cent in fixed income, 2.7 per cent in unlisted real estate and 0.1 per cent in unlisted renewable energy infrastructure.

The return on the fund’s equity investments was -15.3 per cent in 2022, while its return on fixed income was -12.1 per cent.

On the other hand, its investments in unlisted real estate returned 0.1 per cent and its renewable energy infrastructure investments returned 5.1 per cent.

GPFG’s return was 0.88 percentage points better than the return on the benchmark index, equivalent to NOK 118bn.

“The market was impacted by war in Europe, high inflation, and rising interest rates,” commented NBIM CEO, Nicolai Tangen.

“This negatively impacted both the equity market and bond market at the same time, which is very unusual.

“All the sectors in the equity market had negative returns, with the exception of energy.”

NBIM noted that NOK depreciated against several other main currencies during the year, with the currency movements contributing to an increase in the fund’s value of NOK 642bn.

Inflow into the fund amounted to NOK 1.09bn.

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