GOVERNMENT
PENSION FUND
GLOBAL
FIRST QUARTER 2017
PRESS SEMINAR
OSLO, 7 APRIL 2017
Market value
Billions of kroner. As at 31.03.2017
8 000
8 000
Value
Percentage share
Equity investments
5,082
64.6
7 000
Fixed-income investments
2,592
32.9
7 000
6 000
Real estate investments
(unlisted)
193
2.5
6 000
5 000
Real estate investments
5 000
4 000
4 000
3 000
3 000
2 000
2 000
1 000
1 000
07
08
09
Source: Norges Bank Investment Management
10
11
12
13
14
15
16
Fixed-income
investments
Equity investments
17
2
Inflow/withdrawal
Billions of kroner
60
60
50
50
45
42
40
40
30
30
20
20
10
10
0
0
-10
-10
-20
-20
-23
-30
1Q 2016
Source: Norges Bank Investment Management
2Q 2016
3Q. 2016
4Q 2016
Inflow / withdrawal
Average inflow since
1998
Average quarterly
inflow last 10 years
-30
1Q 2017
3
Quarterly change in market value
Billions of kroner
500
500
400
400
300
300
200
200
100
100
Return
0
Inflow/withdrawal
0
-100
Return
Inflow/withdrawal
-200
1Q 2017
298
-23
-100
-200
-300
-300
-400
-400
-500
-500
1Q 2016
Source: Norges Bank Investment Management
2Q 2016
3Q 2016
4Q 2016
1Q 2017
4
Quarterly change in market value
Billions of kroner
500
500
400
400
300
300
200
200
Krone rate
100
100
Return
0
Inflow/withdrawal
0
-100
Return
Inflow/withdrawal
Krone rate
Total
-200
-300
1Q 2017
298
-23
82
357
-100
-200
-300
-400
-400
-500
-500
1Q 2016
Source: Norges Bank Investment Management
2Q 2016
3Q 2016
4Q 2016
Total
1Q 2017
5
Return
Measured in the fund’s currency basket. Quarterly return.
Percent
15
15
10
10
5
5
3.8
0
0
-5
-5
-10
-10
-15
-15
07
08
09
Source: Norges Bank Investment Management
10
11
12
13
14
15
16
Quarterly return
17
6
Return on asset classes
Measured in the fund’s currency basket.
Percent
8
8
6
6
4
4
2
2
Equity investments
0
0
Fixed-income investments
-2
-2
Real estate investments
-4
Equity investments
Fixed-income investments
Real estate investments
(unlisted)
Total
-6
-8
1Q 2016
Source: Norges Bank Investment Management
2Q 2016
3Q 2016
4Q 2016
1Q 2017
5.5%
0.8%
-4
0.5%
-6
3.8%
-8
1Q 2017
7
Fund relative return
Equity and fixed-income investments until 2016.
Percentage points
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
-0.5
-0.5
-1.0
-1.0
-1.5
-1.5
-2.0
-2.0
-2.5
-2.5
07
08
09
Source: Norges Bank Investment Management
10
11
12
13
14
15
16
0.09
Quarterly relative
return
17
8
Changes in value since 1996
Billions of kroner
31.03.2017
31.12.2016
Gross inflow of new capital
3 375
3 397
Accumulated return
3 421
3 123
Management costs
-36
-35
Changes due to fluctuations in krone
1 107
1 025
Market value of the fund
7 867
7 510
Source: Norges Bank Investment Management
9
Historical key figures
Measured in the currency basket. Annualised.
Percent
Since 1.1.1998
Last 10 years
Return on fund
5.83
5.48
Annual inflation
1.77
1.77
Annual management costs
0.09
0.08
Annual net real return on fund
3.91
3.56
Source: Norges Bank Investment Management
10
Developments in equity markets
Measured in USD (Stoxx in EUR). Indexed total return (31.12.2016 = 100)
120
110
120
1Q 2017
FTSE
Global All
Cap
6.9%
S&P 500
Stoxx
Europe
600
MSCI
Asia
Pacific
6.1%
6.3%
9.4%
100
110
100
FTSE Global All-cap
(global)
Stoxx Europe 600
(Europe)
MSCI Asia Pacific
(Asia)
90
80
Jan-16
Source: Bloomberg
90
Apr-16
Jul-16
Oct-16
Jan-17
S&P 500 (US)
80
Apr-17
11
Developments in equity sectors
Measured in USD. Indexed total return (31.12.2016 = 100)
130
120
Technology
Health
care
12.8%
8.7%
1Q 2017
Consumer
Telegoods communications
8.6%
130
Oil and gas
2.2%
110
-3.8%
120
Technology
110
Health care
100
100
Consumer goods
90
90
80
80
Telecommunications
70
70
Oil and gas
60
Jan-16
Source: FTSE
Apr-16
Jul-16
Oct-16
Jan-17
60
Apr-17
12
Development for bonds
Measured in local currency. Indexed total return (31.12.2016 = 100)
110
110
105
105
Dollar
Pound
100
100
Yen
Euro
95
1Q 2017
90
Jan-16
Apr-16
Source: Bloomberg Barclays Indices
Jul-16
Dollar
Pound
Yen
Euro
0.9%
1.6%
-0.4%
-0.9%
Oct-16
Jan-17
95
90
Apr-17
13
Development for bond sectors
Measured in USD. Indexed total return (31.12.2016 = 100)
115
Government
bonds
Governmentrelated bonds
Corporate
bonds
Securitised
bonds
Inflationlinked bonds
2.1%
1.9%
1.6%
0.7%
1.3%
1Q 2017
115
Government bonds
110
110
Government-related
bonds
Corporate bonds
105
105
Securitised bonds
100
100
95
Jan-16
Apr-16
Source: Bloomberg Barclays Indices
Jul-16
Oct-16
Jan-17
Inflation-linked bonds
95
Apr-17
14
Real estate investments and disposals
Announced in the first quarter of 2017
INVESTMENTS
Location
Partner
Price
Share
10 Piccadilly – long term contract
(leasehold interest)
The Crown Estate
334 million kroner
25%
DISPOSALS
Location
Partner
Price
Share
Three logistics properties in the US
Prologis
318.9 million kroner
45%
15
Expectation document on tax and transparency
16
Position paper and Asset manager perspective
CEO remuneration
 Long-term
 Simple
 Transparent
17
Highlights
 The fund returned 3.8 percent in first quarter 2017
 The return on the fund was 0.1 percentage point higher than the return on the
benchmark index
 The market value of the fund increased by 357 billion kroner to 7,867 billion
kroner
 At the end of the quarter, the fund was invested as follows:
• Equity investments
• Fixed-income investments
• Real estate investments (unlisted)
64.6 percent
32.9 percent
2.5 percent
18
GOVERNMENT
PENSION FUND
GLOBAL
FIRST QUARTER 2017
PRESS SEMINAR
OSLO, 7 APRIL 2017