Norwegian State Wealth Fund Posts Low Returns; Cites Oil Prices
Norges Bank, Norway's central bank, has posted its lowest returns on the country's giant investment vehicle, the Government Pension Fund Global, since 2011.
The fund, which was called the Petroleum Fund until 2006, was set up in 1990 to utilise and invest money from the country's petroleum revenues. It is owned by the finance ministry and managed by Norges Bank.
In a statement released March 9, Norges Bank said the fund returned 2.7%, or NKr 334bn (€35.6bn), in 2015, down from a return of 7.6% – Nkr 544bn – in 2014.
Discussing the results, CEO of Norges Bank Investment Management Yngve Slyngstad noted a number of factors that caused volatility in the market, including low oil prices.
Slyngstad classed it overall as a "satisfying" result, despite the challenges.
"2015 was a volatile year, with negative interest rates, currency turmoil, falling oil prices and weaker growth expectations for emerging markets," he said. "We have seen fluctuations in the fund's return from quarter to quarter, but overall a satisfying result."