Government Pension Fund Norway (discontinued), 2nd half-year 2006

The portfolio of shares and other equity came to 58.1 per cent of total capital (NOK 109 billion), measured at market values. The portfolio was invested in central government and private non-financial enterprises, life insurance companies, commercial banks, savings banks and in foreign companies. At the end of 2006, the value of the foreign portfolio amounted to NOK 13.6 billion. This constitutes 12.5 per cent of the Funds total capital and 21.5 per cent of the value of the portfolio of shares and other equity.

The Interest-bearing portfolio was invested in bonds, commercial papers and deposits. Bonds constituted the main part of the interest-bearing securities.

Development throughout the year

At the end of 2006, the Government Pension Fund - Norway’s total capital was NOK 82 billion, or 43 per cent, lower than the value at the end of 2005. The main reason for this is that the Funds mandatory deposits with the treasury were discontinued 29. December 2006. The major part of the long-term deposits was depreciated, while a small part was converted to bonds.

The value of the holdings of shares and other equity amounted to NOK 63.4 billion at the end of 2006. Compared with the value at the end of 2005 this was an increase of NOK 12.8 billion. Moreover, the value of the holdings of bonds equalled NOK 39.3 billion. This was an increase of NOK 5 billion compared with the value at the end of 2005. The value of deposits, commercial papers and other financial deposits was NOK 3.4 billion lower at the end of 2006, compared to 2005.

Tables:

• Table 1 Government Pension Fund - Norway. Balance sheet. 31 December 2001 - 31 December 2006. NOK million
• Table 2 Government Pension Fund - Norway. Bonds and shares and other equity by debtor sector. NOK million