GOVERNMENT
PENSION FUND GLOBAL
FUND MANAGEMENT IN 2016
HEARING BEFORE THE STANDING COMMITTEE ON FINANCE AND ECONOMIC AFFAIRS OF THE STORTING, 2 MAY 2017
YNGVE SLYNGSTAD, CHIEF EXECUTIVE OFFICER
0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
07 08 09 10 11 12 13 14 15 16 17
Fixed-income investments
Real estate investments*
Equity
investments
7,867 billion kroner in the fund
As at 31.3.2017. Billions of kroner
Source: Norges Bank Investment Management
Value Percentage share
Equity investments 5,082 64.6
Fixed-income investments 2,592 32.9 Real estate investments
(unlisted) 194 2.5
* From 2017 unlisted real estate investments
-36 3,375 3,420 1,108
-1,000 0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
-1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
07 08 09 10 11 12 13 14 15 16 17
Krone rate
Return
Inflow
Management costs
Returns exceed inflows
Accumulated values as at 31.3.2017. Billions of kroner
199 billion kroner in cash flow in 2016
Fund annual income recorded. Billions of kroner
0 25 50 75 100 125 150 175 200
0 25 50 75 100 125 150 175 200
07 08 09 10 11 12 13 14 15 16
Coupon interest
Net rental income
Dividends
2016 Since 1997
Dividends 119 662
Coupon interest 73 741
Net rental income 8 19
Sum 199 1,462
Source: Norges Bank Investment Management
Large fund – large expected value fluctuations
Expected volatility. Billion kroner and percent
860
10.9
0 10 20 30 40 50 60 70 80 90
0 100 200 300 400 500 600 700 800 900
07 08 09 10 11 12 13 14 15 16 17
Risk measured in kroner (left axis)
Risk measured in
percent right axis)
0 20 40 60 80 100
0 20 40 60 80 100
97 99 01 03 05 07 09 11 13 15 17
Recommendation on equity share
Share of equities in the fund. Percent
1997
2006
2016
Source: Norges Bank Investment Management
Share of equities in the benchmark index
Percent
55.0 % 57.5 % 60.0 % 62.5 % 65.0 % 67.5 %
55.0 % 57.5 % 60.0 % 62.5 % 65.0 % 67.5 %
Sep-16 Nov-16 Jan-17 Mar-17 May-17
Equity share in the benchmark index
Equity share in the strategic
benchmark index
Expectation documents
2017 2016 Previous
Decreasing management costs
Management costs. Percent of fund value
0.039
0.033
0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07
0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07
07 08 09 10 11 12 13 14 15 16 17
Internal
management costs
Internal
management
costs, excl. real
estate
Public information available on our website
www.nbim.no
GOVERNMENT
PENSION FUND GLOBAL
FUND MANAGEMENT IN 2016
HEARING BEFORE THE STANDING COMMITTEE ON FINANCE AND ECONOMIC AFFAIRS OF THE STORTING, 2 MAY 2017
YNGVE SLYNGSTAD, CHIEF EXECUTIVE OFFICER
