Norway’s Government Pension Fund Global (GPFG) returned 10 per cent in the first half of 2023, its half-year report has revealed.

This return is equivalent to NOK 1,501bn, with the pension fund’s equity investments performing particularly well.

During H1, GPFG’s return on its equity investments was 13.7 per cent, while its return on fixed income was 2.2 per cent.

However, its investments in unlisted real estate and unlisted renewable energy returned negatively, at -4.6 per cent and -6.5 per cent respectively.

The pension fund’s 10 per cent overall return in H1 2023 was in stark contrast to its return in H1 2022, when GPFG reported investment losses of -14.2 per cent amid extreme market volatility.

In the first half of 2023, the pension fund’s return was 0.23 percentage points less than the return on the benchmark index, equivalent to NOK -33bn.

Commenting on the half-year results, Norges Bank Investment Management CEO, Nicolai Tangen, said: "The stock market has been very strong in the first half of the year, following a weak year in 2022.

“Especially technology stocks have seen significant growth, largely driven by the increased demand for new solutions in artificial intelligence.”

The Norwegian krone depreciated against several of the main currencies during the second quarter of the year, contributing to a NOK 980bn increase in the pension fund’s value.

In the first half of the year, inflow into the fund amounted to NOK 389bn.

GPFG had a value of NOK 15,299bn, as at 30 June 2023.

Nearly three-quarters (71.3 per cent) of the fund was invested in equities, 26.4 per cent in fixed income, 2.3 per cent in unlisted real estate, and 0.1 per cent in unlisted renewable energy infrastructure.

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