The Norwegian State Pension Fund, which Folketrygdfondet manages, had a result of NOK 10.7 billion in the first quarter of the year.
This corresponds to a return of 3.03 per cent, which is 0.56 percentage points better than the benchmark index.
The share market continued its rise in the first quarter at the same time as long-term interest rates rose somewhat on expectations of deferred interest rate cuts from the central banks, sums up CEO Kjetil Houg.
– Despite geopolitical unrest and uncertainty related to interest rates, we deliver a steady result and excess return in both the equity and fixed income portfolios. The industrial and healthcare sectors make the most positive contribution to the equity result. Good development in credit margins is pulling up the fixed income portfolio.
At the end of the quarter, the fund’s capital amounted to NOK 365 billion.
Best in Denmark
Folketrygdfondet invests in shares and bonds in Norway, Denmark, Finland and Sweden.
It fared best in Denmark, where the market rose 17.9 per cent during the first quarter. The Swedish market followed with 7.6 per cent, while the Norwegian market only rose 1.6 per cent. The Finnish market had a marginal decline.
– The Nordic market is delivering well and is once again proving to be a good investment universe for a long-term manager. In Denmark, much of the upturn lies in the pharmaceutical company Novo Nordisk, while solid industrial companies have contributed in Sweden. The return on the Oslo Stock Exchange is weighed down by the energy sector, says Houg.
Equinor is by far Folketrygdfondet’s largest share holding, where the company makes up 13.2 per cent of the portfolio. Then follows DNB with 8.6 per cent, and Novo Nordisk with 5.3 per cent.
55 billion in additional returns
This is how the quarter is summarized:
- The return on the share portfolio was 4.49 per cent. It is 0.74 percentage points higher than the benchmark index for shares.
- The return on the interest portfolio was 0.71 per cent. It is 0.28 percentage points higher than the benchmark index for interest.
- Since 2007, Folketrygdfondet’s active management has contributed over NOK 55 billion in additional returns to the community.
In 2023, the fund had a return of 11.4 per cent, or NOK 36 billion.
In the last five years, Folketrygdfondet has had an annual average return that is 0.96 per cent higher than the reference index’s return.
