Government Pension Fund Norway (discontinued), 1st half-year 2011

The value of the Government Pension Fund Norway fell by NOK 0.4 billion, or 0.3 per cent, in the first 6 months of 2011. However, for the composition of the fund, the changes were substantial; bonds increased by NOK 9.9 billion, while shares and other equity were reduced by NOK 9.2 billion. Deposits (NOK -0.7 billion) and other financial assets (NOK -0.5 billion) also fell.

Large increase in mortgage company bonds

The bond portfolio increased substantially in the first 6 months of 2011, from NOK 44.9 billion at the end of 2010, to NOK 54.8 billion at the end of June 2011, constituting an increase of more than 22 per cent. The lion’s share of the increase was in bonds issued by mortgage companies, which rose from NOK 4.7 billion to NOK 12.5 billion; an increase of 164 per cent. Bonds issued by financial institutions, of which mortgage companies form part, now constitute 52 per cent of the bond portfolio.

Decrease in shares and other equity

At the end of June 2011, shares and other equity amounted to 57 per cent of the fund’s value, down from 63 per cent 6 months earlier. Of a total portfolio of shares and other equity valued at NOK 78.8 billion, NOK 53 billion, or 67 per cent, is placed in non-financial enterprises. Of this, NOK 35.5 billion is invested in private incorporated companies; a decrease of NOK 7.3 billion, or 20 per cent, compared to 6 months earlier.

At the end of the first half of 2011, the Government Pension Fund Norway had shares and other equity in the other Nordic countries valued at NOK 18.1 billion and similarly bonds valued at NOK 9.8 billion.

Tables:

• Table 1 Government Pension Fund Norway. Balance sheet. 30 June 2006-30 June 2011. NOK million
• Table 2 Government Pension Fund Norway. Bonds and shares and other equity by debtor sector. NOK million