1. Investments

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The investments in the Government Pension Fund Global returned 5.7 percent in the first half of 2025. This was 0.05 percentage point less than the return on the benchmark index. The value of the fund decreased by 156 billion kroner during the period to 19,586 billion kroner.

The change in the fund’s value breaks down into an accounting return of 698 billion kroner, transfers from the government of 156 billion kroner after costs, and a negative contribution from a stronger krone of 1,010 billion kroner.

Equities made up 70.6 percent of the fund’s value at the end of the period, fixed income 27.1 percent, unlisted real estate 1.9 percent and unlisted renewable energy infrastructure 0.4 percent.

The fund is invested in international securities and unlisted real estate and infrastructure in foreign currency. Returns are measured primarily in international currency – a weighted combination of the currencies in the fund’s benchmark index for equities and bonds. Unless otherwise stated, the results in this report are measured in this currency basket.

TABLE 1 Key figures from the financial statements in billions of kroner.

 

First half 2025

First quarter 2025

2024

Market value

     

Equity investments

13,841

12,972

14,113

Fixed-income investments

5,311

5,125

5,253

Unlisted real estate investments

365

358

364

Unlisted infrastructure investments1

84

80

25

Market value of investment portfolio2

19,602

18,536

19,755

Deferred tax

-12

-9

-13

Accrued, not paid, management fees3

-4

-2

0

Fund value2

19,586

18,524

19,742

       

Inflow of capital

160

78

409

Withdrawal of capital

-

-

-

Paid management fees4

0

0

-7

Return on fund5

698

-415

2,511

Changes due to fluctuations in krone6

-1,010

-879

1,072

Changes due to accrued, not paid, management fees

-4

-2

0

Total change in fund value

-156

-1,217

3,985

       

Changes in value since first capital inflow in 1996

     

Total inflow of capital

6,024

5,942

5,864

Total withdrawal of capital3

-687

-687

-687

Return on equity investments5

10,332

9,290

9,786

Return on fixed-income investments5

1,394

1,324

1,252

Return on unlisted real estate investments5

76

74

67

Return on unlisted infrastructure investments1,5

4

2

2

Management fees4

-81

-80

-77

Accumulated fluctuations in krone

2,536

2,668

3,547

Accumulated deferred tax7

-12

-9

-12

Fund value

19,586

18,524

19,742

       

Return on fund

11,793

10,680

11,095

Return after management costs

11,712

10,601

11,017

 

First unlisted infrastructure investment was made in the second quarter of 2021.
2 The market value of the investment portfolio is presented before management fee payable/receivable and deferred tax.
3 Total inflow and withdrawal of capital shown in this table is not adjusted for accrued, not paid, management fees.
4 Management fees are described in note 11 in the financial statements.
5 Fund return of 698 billion kroner includes the accounting effect of changes in recognised deferred tax. The return on the investment portfolios excludes deferred tax and amounted to 699 billion kroner.
6 See note 10 Foreign exchange gains and losses in the financial statements.
7 Does not include the effect of exchange rate fluctuations on deferred tax.


CHART 1 Quarterly development in the market value of the investment portfolio in billions of kroner.

Bar chart

 

CHART 2 Quarterly changes in the market value of the investment portfolio in billions of kroner.

 

Bar chart

 

CHART 3 The fund’s quarterly return and accumulated annualised return in percent.

 

Bar and line chart

 

TABLE 2 Return figures in percent. Measured in the fund's currency basket.

 

First half 2025

Second quarter 2025

First quarter 2025

Equity investments

6.73

8.45

-1.59

Fixed-income investments

3.31

1.67

1.61

Unlisted real estate investments

4.02

1.59

2.39

Unlisted infrastructure investments

9.43

8.10

1.23

Return on fund

5.74

6.42

-0.64

       

Management costs

0.02

0.01

0.01

Return on fund after management costs

5.72

6.41

-0.65

TABLE 3 Historical key figures in percent as at 30 June 2025. Annualised data, measured in the fund's currency basket.

 

Since 01.01.1998

Last 10 years

Last 12 months

Fund return

6.44

7.39

10.12

Annual price inflation

2.15

2.69

2.45

Annual management costs

0.07

0.05

0.04

       

Net real return on fund

4.12

4.53

7.45

The fund's actual standard deviation

8.38

9.80

7.11

Return on equity investments

The fund’s equity investments had a strong first half, returning 6.7 percent for the period. Financials, telecoms and utilities were the strongest sectors, while health care produced the weakest return.

Financials perform best

Financials returned 16.5 percent in the first half of the year and accounted for 17.0 percent of the equity investments. European banks made the greatest contribution to this return, driven by expectations of increased public expenditure and further healthy profitability.

Telecoms returned 13.3 percent and amounted to 2.9 percent of the equity investments. The sector benefited from stable revenue streams, expectations of consolidation in Europe, and new sources of revenue in artificial intelligence.

Utilities returned 12.4 percent and made up 2.5 percent of the equity investments. Power producers and distributors contributed to this positive return, partly because investors sought more stable investments in a period of falling oil and gas prices.

Health care stocks returned -2.9 percent and amounted to 9.2 percent of the equity investments. Health care providers in particular lost value amid uncertainty around changes to US health care policy.

A full list of the fund’s equity investments can be found at www.nbim.no.

TABLE 4 Return on the fund's equity investments in first half of 2025. In percent. Measured in the fund's currency basket.

Market

Return

Share of equity investments

North America

1.4

57.7

Europe

17.8

22.2

Asia and Oceania

11.7

10.5

Emerging markets

6.9

10.8

TABLE 5 Return on the fund's equity investments in first half of 2025. In percent. Measured in the fund's currency basket and sorted by sector.

Sector

Return

Share of equity investments1

Technology

5.2

27.5

Financials

16.5

17.0

Consumer Discretionary

1.5

13.8

Industrials

9.7

13.3

Health Care

-2.9

9.2

Real Estate

1.9

4.8

Consumer Staples

4.3

4.5

Basic Materials

8.0

3.1

Telecommunications

13.3

2.9

Energy

6.3

2.9

Utilities

12.4

2.5

1 Does not sum up to 100 percent because cash and derivatives are not included.

CHART 4 Price developments in regional equity markets. Measured in US dollars. Indexed total return 31.12.2024 = 100. Source: Bloomberg.

 

Line chart

 

CHART 5 Price developments in the three sectors with the highest and weakest return in the FTSE Global All Cap index. Measured in dollars. Indexed total return 31.12.2024 = 100. Source: FTSE Russel.

 

Line chart

 

Return on fixed-income investments

Fixed-income investments returned 3.3 percent in the first half of 2025. Increased political uncertainty led to considerable volatility in fixed-income markets. US Treasury yields declined somewhat during the period.

Exchange rates impact returns

Government bonds returned 2.5 percent for the period. The fund’s three largest holdings were of US, Japanese and German government bonds.

US Treasuries accounted for 31.4 percent of fixed-income investments and returned -0.4 percent. The Federal Reserve left its policy rate unchanged during the first half. Markets anticipate two rate cuts in the second half, but there is considerable uncertainty, particularly around trade policy. The marked fall in the dollar was a major contributor to the weak return.

Euro-denominated government bonds made up 11.2 percent of fixed-income investments and returned 8.3 percent. The European Central Bank cut its policy rate by a total of 1 percentage point during the period, taking it to 2 percent. The strong return was mainly the result of the euro appreciating.

Japanese government bonds amounted to 5.2 percent of fixed-income holdings and returned 1.6 percent. The Bank of Japan doubled its policy rate from 0.25 percent to 0.5 percent in January and has since left it unchanged. Yields on long Japanese government bonds have been unusually volatile and risen over time.

A full list of the fund’s fixed-income investments can be found at
www.nbim.no.

 

CHART 6 10-year government bond yields in percent. Source: Bloomberg.Line diagram

 

CHART 7 Price developments in fixed-income sectors. ­Measured in dollars. Indexed total return 31.12.2024 = 100. Source: Bloomberg Barclays Indices.

 

Line chart

 

TABLE 6 Return on the fund's fixed-income investments in the first half of 2025. In percent. Measured in the fund's currency basket and sorted by sector.

Sector

Return

Share of fixed-income investments1

Government bonds2

2.5

57.9

Government-related bonds2

5.5

9.8

Inflation-linked bonds2

2.9

6.3

Corporate bonds

2.9

24.9

Securitised bonds

9.5

6.0

1 Does not sum up to 100 percent because cash and derivatives are not included.

2 Governments may issue different types of bonds, and the fund's investments in these bonds are grouped accordingly. Bonds issued by a country's government in the country's own currency are categorised as government bonds. Bonds issued by a country's government in another country's currency are government-related bonds. Inflation-linked bonds issued by governments are grouped with inflation-linked bonds.

Return on real estate investments

The fund’s total real estate investments returned 1.8 percent in the first half of the year and made up 3.6 percent of the fund at the end of the period. The fund’s real estate strategy covers both unlisted and listed real estate investments.

Investments in unlisted real estate made up 52 percent of the total real estate portfolio and returned 4.0 percent, while investments in listed real estate returned -0.5 percent.

The fund’s unlisted real estate investments are primarily in the office, retail and logistics segments. Values increased particularly in the European office and retail segments, thanks to the European Central Bank’s policy rate cuts and lower office vacancy rates, especially in London and Paris. In the US, where the policy rate was unchanged, developments were more mixed. Vacancy rates rose overall, but some markets showed signs of improvement. The fund’s listed real estate investments span a variety of sectors. Life sciences and cold storage contributed negatively to the return.

A full list of the fund’s real estate investments can be found at www.nbim.no.

TABLE 7 Value of real estate investments in millions of kroner as at 30 June 2025.

 

Value1

Unlisted real estate investments

365,194

Listed real estate investments

331,981

Total real estate investments

697,175

1 Including bank deposits and other receivables.

TABLE 8 Return on unlisted real estate investments in the first half of 2025. 
In percentage points.

 

Return

Rental income

2.0

Changes in value

0.6

Transaction costs

-0.1

Result of currency adjustments

1.5

Total

4.0

Return on unlisted renewable energy infrastructure investments

Investments in unlisted renewable energy infrastructure returned 9.4 percent in the first half of the year. The return on the portfolio comprises net income from power sales and changes in the value of the investments. The positive return was a result of favourable currency effects and income during the period. Besides projects already in operation, we have committed capital to future projects and projects under construction. These projects are expected to generate income in the future.

The fund made two new investments during the period. In March, the fund invested in a 49 percent interest in two offshore wind projects under construction in Denmark and Germany for 4,000 million euros, or around 45 billion kroner. The fund's investments in the projects includes future construction costs.

A full list of the fund’s unlisted renewable energy infrastructure investments can be found at www.nbim.no.

TABLE 9 Value of unlisted renewable energy infrastructure investments in millions of kroner as at 30 June 2025.

 

Value1

Unlisted infrastructure investments

84,238

1 Including bank deposits and other receivables.

TABLE 10 Return on unlisted renewable energy infrastructure investments in the first half of 2025. In percent.

 

Return

Unlisted infrastructure investments

9.4

The fund’s relative return

The return on the fund for the first half of the year was 0.05 percentage point less than the return on the benchmark index from the Ministry of Finance, corresponding to a relative return of -10 billion kroner.

Equity management contributed 0.03 percentage point to the relative return for the period. Investments in technology and financials made the most positive contributions, while health care made the most negative.

Fixed-income management contributed 0.06 percentage point to the relative return. Investments in Europe contributed strongly to the relative return, as did those in emerging markets, where the fund has an allocation but the benchmark index does not.

Investments in real estate made the most negative contribution to the fund’s relative return, measured against the equities and bonds sold to fund them. Unlisted real estate investments contributed -0.04 percentage point. This weak performance was mainly attributable to investments in the logistics and office segments in the US. Listed real estate investments contributed -0.08 percentage point to the relative return.

Investments in renewable energy infrastructure made a negligible contribution to the relative return.

The relative return for the period was also affected by the fund having a lower allocation to equities and a higher allocation to bonds than the benchmark index did. The contribution from this effect was -0.02 percentage point.

CHART 8 The fund’s quarterly relative return and accumulated annualised relative return in percentage points. Calculations based on aggregated equity and fixed-income investments until end of 2016.

 

Bar and line chart

 

TABLE 11 Historic relative return in percentage points as at 30 June 2025. Annualised figures measured in the fund's currency basket.

 

Since 01.01.1998

Last 15 years

Last 10 years

Last 5 years

Last 12 months

Relative return on fund (percentage points)1

0.25

0.23

0.19

0.31

-0.45

The fund's tracking error (percentage points)1

0.63

0.39

0.39

0.45

0.27

The fund's information ratio (IR)1,2

0.40

0.55

0.45

0.58

-1.57

1 Based on aggregated equity and fixed-income investments until end of 2016.

2 The fund's information ratio (IR) is the ratio of the fund's average monthly relative return to the fund's tracking error. The IR indicates how much relative return has been achieved per unit of relative risk.

TABLE 12 Contributions from management areas to the fund's relative return in percentage points in the first half of 2025.

 

Total

Equity management

0.03

Fixed-income management

0.06

Real assets management

-0.12

Allocation effect

-0.02

Total

-0.05

The fund’s investment framework

The fund is managed on the basis of limits set in the mandate from the Ministry of Finance.

TABLE 13Key figures for the fund's risk and exposure.

Limits set by the Ministry of Finance

30.06.2025

Allocation

Equity portfolio 60–80 percent of fund's market value1

70.4

 

Unlisted real estate no more than 7 percent of the fund's market value

1.9

 

Fixed-income portfolio 20–40 percent of fund's market value1

27.7

 

Unlisted renewable energy infrastructure no more than 2 percent of the fund's market value

0.4

Market risk

1.25 percentage points expected relative volatility for the fund's investments

0.4

Credit risk

Maximum 5 percent of fixed-income investments may be rated below BBB-

1.3

Emerging markets

Maximum 5 percent of fixed-income investments may be in emerging markets

3.2

Ownership

Maximum 10 percent of voting shares in a listed company in the equity portfolio2

9.7

1 Derivatives are represented with their underlying economic exposure.

2 Investments in listed and unlisted real estate companies are exempt from this restriction.

Information on risk and exposure in each asset class can be found at www.nbim.no.

Operational risk management

The Executive Board has decided that there must be less than a 20 percent probability that operational risk factors result in gains and losses totalling 1 billion kroner or more over a 12-month period. This is referred to as the Executive Board’s operational risk tolerance.

Estimated operational risk exposure remained within the Executive Board’s tolerance limit in the first half of the year. A total of 85 unwanted operational events were registered, with an estimated financial impact of around 58 million kroner.

Responsible investment

The first half of the year is the busy season for voting at the companies in which the fund is invested, with more than two thirds of these companies’ annual shareholder meetings taking place between April and June. Voting is one of the most important instruments available to us for exercising our ownership rights. We voted on a total of 87,399 proposals at 7,936 shareholder meetings in the first half of 2025. All of our voting is continuously updated at www.nbim.no. We also publish a summary of our voting in the first half of each year.

We had 1,427 meetings with companies during the period, raising governance and sustainability issues at 55.4 percent of them. These issues mostly concerned capital management, climate change and human capital.

2. Financial statements

Income statement

Amounts in NOK million

Note

1H 2025

1H 2024

2024

Profit/loss on the portfolio before foreign exchange gain/loss

       

Income/expense from:

       

- Equities

4

552 618

1 512 742

2 454 653

- Bonds

4

143 415

-33 367

70 889

- Unlisted real estate

6

8 662

-3 617

-3 789

- Unlisted infrastructure

7

1 426

-3 080

-627

- Financial derivatives

4

2 420

12 944

11 262

- Secured lending

 

10 232

9 960

21 622

- Secured borrowing

 

-12 264

-10 609

-24 810

Tax expense

 

-7 237

-10 077

-17 211

Interest income/expense

 

-749

-325

-939

Other income/expense

 

-53

6

4

Profit/loss on the portfolio before foreign exchange gain/loss

 

698 467

1 474 576

2 511 054

Foreign exchange gain/loss

10

-1 010 301

314 393

1 072 207

Profit/loss on the portfolio

 

-311 833

1 788 969

3 583 261

Management fee

11

-3 999

-4 267

-7 390

Profit/loss and total comprehensive income

 

-315 832

1 784 703

3 575 870

Balance sheet

Amounts in NOK million

Note

30.06.2025

31.12.2024

Assets

     

Deposits in banks

 

22 102

25 550

Secured lending

 

545 735

1 020 455

Cash collateral posted

 

15 153

11 340

Unsettled trades

 

118 000

72 619

Equities

5

13 196 848

13 290 055

Equities lent

5

694 692

862 197

Bonds

5

4 974 409

4 481 076

Bonds lent

5

600 156

1 088 846

Financial derivatives

5

24 836

32 904

Unlisted real estate

6

361 348

355 769

Unlisted infrastructure

7

47 356

25 236

Withholding tax receivable

 

14 221

17 938

Other assets

 

4 075

1 690

Total assets

 

20 618 930

21 285 673

       

Liabilities and owner's capital

     

Secured borrowing

 

773 258

1 319 892

Cash collateral received

 

48 418

103 193

Unsettled trades

 

169 602

76 260

Financial derivatives

5

25 687

31 229

Deferred tax

 

12 081

13 170

Other liabilities

 

126

147

Management fee payable

 

3 999

190

Total liabilities

 

1 033 172

1 544 083

Owner's capital

 

19 585 757

19 741 590

Total liabilities and owner's capital

 

20 618 930

21 285 673

Statement of cash flows

Amounts in NOK million, receipt (+) / payment (-)

Note

1H 2025

1H 2024

2024

Operating activities

       

Receipts of dividend from equities

 

162 206

152 668

267 025

Receipts of interest from bonds

 

78 610

59 825

131 621

Receipts of interest and dividend from unlisted real estate

6

4 254

3 969

8 175

Receipts of interest and dividend from unlisted infrastructure

7

439

232

440

Net receipts of interest and fee from secured lending and borrowing

 

-2 144

-1 805

-3 359

Receipts of dividend, interest and fee from holdings of equities, bonds, unlisted real estate and unlisted infrastructure

 

243 365

214 889

403 902

         

Net cash flow from purchase and sale of equities

 

-1 095

-163 398

-230 218

Net cash flow from purchase and sale of bonds

 

-283 972

-264 478

-650 861

Net cash flow to/from investments in unlisted real estate

6

-21 246

-3 327

-40 244

Net cash flow to/from investments in unlisted infrastructure

7

-20 472

-5 102

-7 614

Net cash flow financial derivatives

 

-1 193

9 497

20 874

Net cash flow cash collateral related to derivative transactions

 

-53 230

23 400

73 732

Net cash flow secured lending and borrowing

 

-14 970

21 844

65 565

Net payment of taxes

 

-3 495

-13 123

-20 710

Net cash flow related to interest on deposits in banks and bank overdraft

 

-80

114

214

Net cash flow related to other income/expense, other assets and other liabilities

 

-1 565

9

920

Management fee paid to Norges Bank1

 

-190

-4 232

-7 032

Net cash inflow/outflow from operating activities

 

-158 145

-183 908

-391 472

         

Financing activities

       

Inflow from the Norwegian government

 

158 315

193 009

411 365

Withdrawal by the Norwegian government

 

-

-

-

Net cash inflow/outflow from financing activities

 

158 315

193 009

411 365

         

Net change deposits in banks

       

Deposits in banks at 1 January

 

25 550

8 584

8 584

Net increase/decrease of cash in the period

 

170

9 101

19 892

Net foreign exchange gain/loss on cash

 

-3 617

-232

-2 927

Deposits in banks at end of period

 

22 102

17 454

25 550

1 Management fee in the statement of cash flows consists of transfers to/from the krone account in connection with the settlement of management costs incurred in Norges Bank.

Statement of changes in owner's capital

Amounts in NOK million

Inflows from owner

Retained ­earnings

Total owner's capital

1 January 2024

4 768 370

10 988 349

15 756 719

Profit/loss and total comprehensive income

-

1 784 703

1 784 703

Inflow during the period

192 000

-

192 000

Withdrawal during the period

-

-

-

30 June 2024

4 960 370

12 773 052

17 733 422

       

1 July 2024

4 960 370

12 773 052

17 733 422

Profit/loss and total comprehensive income

-

1 791 167

1 791 167

Inflow during the period

217 000

-

217 000

Withdrawal during the period

-

-

-

31 December 2024

5 177 370

14 564 220

19 741 590

       

1 January 2025

5 177 370

14 564 220

19 741 590

Profit/loss and total comprehensive income

-

-315 832

-315 832

Inflow during the period

160 000

-

160 000

Withdrawal during the period

-

-

-

30 June 2025

5 337 370

14 248 388

19 585 757

Notes

Note 1 General information

Introduction

Norges Bank is Norway’s central bank. Norges bank is a separate legal entity and is owned by the state. Norges bank manages the Government Pension Fund Global (GPFG) on behalf of the Ministry of Finance, in accordance with section 3, second paragraph of the Government Pension Fund Act and the management mandate for the GPFG, issued by the Ministry of Finance.

The GPFG shall support government saving to finance future expenditure and underpin long-term considerations relating to the use of Norway’s petroleum revenues. The Storting (Norwegian Parliament) has established the legal framework in the Government Pension Fund Act, and the Ministry of Finance has formal responsibility for the fund’s management. The Executive Board of Norges Bank has delegated day-to-day management of the GPFG to Norges Bank Investment Management (NBIM).

The Ministry of Finance has placed funds for investment in the GPFG in the form of a Norwegian krone deposit with Norges Bank (the krone account). Norges Bank manages the krone account in its own name by investing the funds in an investment portfolio consisting of listed equities, bonds, real estate and renewable energy infrastructure. The GPFG is invested in its entirety outside of Norway.

Transfers are made to and from the krone account in accordance with the management mandate. When the Norwegian State’s petroleum revenue exceeds the use of petroleum revenue in the fiscal budget, deposits will be made into the krone account. In the opposite situation, withdrawals will be made. Transfers to and from the krone account lead to a corresponding change in owner’s capital.

Approval of the interim financial statements

The interim financial statements of Norges Bank for the first half of 2025, which only encompass the financial reporting for the GPFG, were approved by the Executive Board on 8 August 2025.

Note 2 Accounting policies

Basis of preparation

In accordance with the Regulation on the financial reporting of Norges Bank (the Regulation), laid down by the Ministry of Finance, the financial reporting for the GPFG is prepared in accordance with IFRS Accounting Standards as adopted by the EU, based on the going concern assumption.

The condensed interim financial statements for the first half of 2025 are prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements are presented in Norwegian kroner (NOK), rounded to the nearest million. Rounding differences may occur.

The interim financial statements are prepared using the same accounting policies and calculation methods as applied and disclosed in the annual report for 2024. The condensed interim financial statements do not include all the information and disclosures required in annual financial statements and should therefore be read in conjunction with the annual report for 2024.

Significant estimates and accounting judgements

The preparation of the interim financial statements involves the use of uncertain estimates and assumptions relating to future events that affect the reported amounts for assets, liabilities, income and expenses. Estimates are based on historical experience and reflect management’s expectations about future events. Actual outcomes may deviate from estimates. The preparation of the interim financial statements also involves the use of judgement when applying accounting policies, which may have a significant impact on the financial statements.

In cases where there are particularly uncertain estimates or accounting judgements, this is described in the respective notes.

Note 3 Returns

Table 3.1 Returns

1H 2025

1H 2024

2024

Returns measured in the fund's currency basket (percent)

     

Return on equity investments

6.73

12.47

18.19

Return on fixed-income investments

3.31

-0.62

1.28

Return on unlisted real estate investments

4.02

-0.50

-0.57

Return on unlisted infrastructure investments

9.43

-17.69

-9.81

Return on fund

5.74

8.59

13.09

       

Relative return on fund (percentage points)

-0.05

-0.04

-0.45

       

Returns measured in Norwegian kroner (percent)

     

Return on equity investments

-0.67

15.32

28.10

Return on fixed-income investments

-3.85

1.90

9.77

Return on unlisted real estate investments

-3.19

2.02

7.77

Return on unlisted infrastructure investments

1.84

-15.61

-2.25

Return on fund

-1.59

11.34

22.57

For additional information on the calculation methods used when measuring returns, see note 3 Returns in the annual report for 2024.

Note 4 Income/expense from equities, bonds and financial derivatives

Tables 4.1 to 4.3 specify the change in fair value in the period, where the line Income/expense shows the amount recognised in profit or loss for the respective income statement line.

Table 4.1 Specification Income/expense from equities

Amounts in NOK million

1H 2025

1H 2024

2024

Dividends

167 471

158 335

270 263

Realised gain/loss

360 266

325 684

617 366

Unrealised gain/loss

24 882

1 028 723

1 567 024

Income/expense from equities before foreign exchange gain/loss

552 618

1 512 742

2 454 653

Table 4.2 Specification Income/expense from bonds

Amounts in NOK million

1H 2025

1H 2024

2024

Interest

85 375

71 375

157 191

Realised gain/loss

-20 773

-41 233

-44 964

Unrealised gain/loss

78 813

-63 509

-41 338

Income/expense from bonds before foreign exchange gain/loss

143 415

-33 367

70 889

Table 4.3 Specification Income/expense from financial derivatives

Amounts in NOK million

1H 2025

1H 2024

2024

Interest

488

-1 602

-4 494

Realised gain/loss

4 278

12 945

11 411

Unrealised gain/loss

-2 347

1 602

4 345

Income/expense from financial derivatives before foreign exchange gain/loss

2 420

12 944

11 262

Note 5 Holdings of equities, bonds and financial derivatives

Table 5.1 specifies the sector composition of investments in equities.

Table 5.1 Equities

Amounts in NOK million

30.06.2025

Fair value
incl. earned dividends

31.12.2024

Fair value
incl. earned dividends

Technology

3 657 364

3 821 747

Financials

2 350 878

2 175 781

Consumer discretionary

1 904 913

2 018 538

Industrials

1 852 007

1 790 346

Health care

1 261 217

1 390 234

Consumer staples

617 957

652 771

Real estate

658 945

691 317

Basic materials

432 392

434 985

Energy

401 931

444 666

Telecommunications

408 571

405 090

Utilities

345 365

326 775

Total equities

13 891 540

14 152 251

Of which presented in the balance sheet line Equities

13 196 848

13 290 055

Of which presented in the balance sheet line Equities lent

694 692

862 197

At the end of the first half of 2025, earned dividends amounted to NOK 15 527 million (NOK 12 234 million at the end of 2024).

Table 5.2 specifies investments in bonds per category. Notional value represents the amount that shall be returned at maturity, also referred to as the par value of the bond.

Table 5.2 Bonds

30.06.2025

31.12.2024

Amounts in NOK million

Notional value

Fair value incl. earned interest

Notional value

Fair value incl. earned interest

Government bonds

3 264 077

3 078 008

3 388 045

3 166 117

Government-related bonds

533 613

522 157

507 114

492 665

Inflation-linked bonds

353 924

333 999

325 074

303 792

Corporate bonds

1 362 284

1 320 416

1 367 998

1 302 352

Securitised bonds

333 424

319 985

322 255

304 996

Total bonds

5 847 322

5 574 565

5 910 486

5 569 922

Of which presented in the balance sheet line Bonds

 

4 974 409

 

4 481 076

Of which presented in the balance sheet line Bonds lent

 

600 156

 

1 088 846

At the end of the first half of 2025, earned interest amounted to NOK 51 239 million (NOK 51 128 million at the end of 2024).

Financial derivatives

Financial derivatives are used to adjust the exposure in various portfolios as a cost-efficient alternative to trading in the underlying securities. Foreign exchange derivatives are also used in connection with liquidity management. Equity derivatives with an option component are often a result of corporate actions, and can be converted into equities or sold. The GPFG also uses equity swaps in combination with purchase and sale of equities. Equity swaps are not recognised in the balance sheet. See the accounting policy in note 13 Secured lending and borrowing in the annual report for 2024 for further information.

Table 5.3 specifies financial derivatives recognised in the balance sheet. Notional amounts are the basis for calculating any cash flows and gains/losses for derivative contracts. This provides information on the extent to which different types of financial derivatives are used.

Table 5.3 Financial derivatives

30.06.2025

31.12.2024

Amounts in NOK million

Notional amount

Fair value

Notional amount

Fair value

Asset

Liability

Asset

Liability

Foreign exchange derivatives

975 858

4 285

6 573

1 216 103

14 652

10 267

Interest rate derivatives

4 028 082

16 619

9 782

2 827 002

14 028

10 961

Credit derivatives

146 228

3 743

9 303

173 841

4 147

9 982

Equity derivatives1

-

161

-

-

36

-

Exchange-traded futures contracts2

203 699

29

30

174 242

40

20

Total financial derivatives

5 353 867

24 836

25 687

4 391 189

32 904

31 229

1 Notional amounts are not considered relevant for equity derivatives and are therefore not included in the table.

2 Exchange-traded futures contracts have daily margin payments and the net amount recognised in the balance sheet is normally zero at the balance sheet date, with the exception of futures contracts in certain markets where there is different timing for setting the market value for recognition in the balance sheet and daily margining.

Note 6 Unlisted real estate

Investments in unlisted real estate are made through subsidiaries of Norges Bank, exclusively established as part of the management of the GPFG. Subsidiaries presented as Unlisted real estate in the balance sheet are measured at fair value through profit or loss. The fair value of unlisted real estate is equivalent to the sum of the GPFG’s share of assets and liabilities in the underlying real estate subsidiaries, measured at fair value. For further information, see note 2 Accounting policies and note 8 Fair value measurement in the annual report for 2024.

Income/expense, changes in carrying amounts and cash flows related to investments in unlisted real estate are specified in the tables below. See note 6 Unlisted real estate in the annual report for 2024 for further information on the principles applied in the tables.

Table 6.1 Income/expense from unlisted real estate

Amounts in NOK million

1H 2025

1H 2024

2024

Receipts of interest and dividend

4 254

3 969

8 175

Unrealised gain/loss1

4 408

-7 586

-11 963

Income/expense from unlisted real estate before foreign exchange gain/loss

8 662

-3 617

-3 789

1 Earned interest and dividends which are not cash-settled are included in Unrealised gain/loss.

Table 6.2 Changes in carrying amounts unlisted real estate

Amounts in NOK million

30.06.2025

31.12.2024

Unlisted real estate at 1 January

355 769

300 541

Net cash flow to/from investments

21 246

40 244

Unrealised gain/loss

4 408

-11 963

Foreign exchange gain/loss

-20 075

26 947

Unlisted real estate, closing balance for the period

361 348

355 769

Table 6.3 specifies cash flows between the GPFG and subsidiaries presented as Unlisted real estate.

Table 6.3 Cash flow unlisted real estate

Amounts in NOK million

1H 2025

1H 2024

2024

Receipts of interest from ongoing operations

1 243

1 387

2 889

Receipts of dividends from ongoing operations

3 010

2 548

5 252

Receipts of interest from sales

-

33

33

Receipts of interest and dividend from unlisted real estate

4 254

3 969

8 175

       

Payments for new investments

-17 902

-2 208

-37 716

Payments for property development

-2 288

-1 502

-3 444

Net payments external debt

-1 742

-

-

Receipts from ongoing operations

686

357

890

Receipts from sales

-

26

26

Net cash flow to/from investments in unlisted real estate

-21 246

-3 327

-40 244

       

Net cash flow unlisted real estate

-16 993

642

-32 069

Of which cash flow from ongoing operations

4 940

4 293

9 032

Of which cash flow to/from other activities

-21 933

-3 651

-41 101

Underlying real estate companies

Real estate subsidiaries have investments in other non-consolidated, unlisted companies. For further information, see note 16 Interests in other entities in the annual report for 2024.

Table 6.4 specifies the GPFG’s share of net income generated in the underlying real estate companies, which is the basis for Income/expense from unlisted real estate presented in table 6.1.

Table 6.4 Income from underlying real estate companies

Amounts in NOK million

1H 2025

1H 2024

2024

Net rental income

8 525

7 122

14 708

External asset management – fixed fees

-589

-499

-1 023

External asset management – variable fees

-1

-1

-24

Internal asset management – fixed fees1

-59

-56

-114

Operating costs in wholly-owned subsidiaries2

-59

-33

-76

Operating costs in joint ventures

-89

-88

-174

Interest income/expense

-468

-353

-806

Tax expense

-154

-148

-253

Net income from ongoing operations

7 106

5 945

12 237

       

Realised gain/loss

35

92

93

Unrealised gain/loss3

1 911

-9 657

-15 718

Realised and unrealised gain/loss

1 946

-9 564

-15 625

       

Transaction costs and fees from purchases and sales

-391

3

-400

       

Net income underlying real estate companies

8 662

-3 617

-3 789

1 Internal asset management is carried out on 100 percent owned properties by employees in a wholly-owned, consolidated subsidiary.

2 Operating costs in wholly-owned subsidiaries are measured against the upper limit from the Ministry of Finance, see note 11 for more information.

3 Unrealised gain/loss presented in table 6.1 includes net income in the underlying real estate companies which is not distributed back to the GPFG, and will therefore not correspond to Unrealised gain/loss presented in table 6.4.

Table 6.5 specifies the GPFG’s share of assets and liabilities in the underlying real estate companies, which comprises the closing balance for Unlisted real estate presented in table 6.2.

Table 6.5 Assets and liabilities underlying real estate companies

Amounts in NOK million

30.06.2025

31.12.2024

Properties

394 925

374 603

External debt

-33 798

-31 494

Net other assets and liabilities1

222

12 660

Total assets and liabilities underlying real estate companies

361 348

355 769

1 Net other assets and liabilities comprise cash, tax and operational receivables and liabilities.

Note 7 Unlisted renewable energy infrastructure

Investments in unlisted renewable energy infrastructure (Unlisted infrastructure) are made through subsidiaries of Norges Bank, exclusively established as part of the management of the GPFG. Subsidiaries presented as Unlisted infrastructure in the balance sheet are measured at fair value through profit or loss. The fair value of unlisted infrastructure is equivalent to the sum of the GPFG’s share of assets and liabilities in the underlying infrastructure subsidiaries, measured at fair value. For further information, see note 2 Accounting policies and note 8 Fair value measurement in the annual report for 2024.

Income/expense, changes in carrying amounts and cash flows related to investments in unlisted infrastructure are specified in the tables below. See note 7 Unlisted renewable energy infrastructure in the annual report for 2024 for further information on the principles applied in the tables.

Table 7.1 Income/expense from unlisted infrastructure

Amounts in NOK million

1H 2025

1H 2024

2024

Receipts of interest and dividend

439

232

440

Unrealised gain/loss1

986

-3 312

-1 067

Income/expense from unlisted infrastructure before foreign exchange gain/loss

1 426

-3 080

-627

1 Earned interest and dividends which are not cash-settled are included in Unrealised gain/loss.

Table 7.2 Changes in carrying amounts unlisted infrastructure

Amounts in NOK million

30.06.2025

31.12.2024

Unlisted infrastructure at 1 January

25 236

17 593

Net cash flow to/from investments

20 472

7 614

Unrealised gain/loss

986

-1 067

Foreign exchange gain/loss

661

1 096

Unlisted infrastructure, closing balance for the period

47 356

25 236

Table 7.3 specifies cash flows between the GPFG and subsidiaries presented as Unlisted infrastructure.

Table 7.3 Cash flow unlisted infrastructure

Amounts in NOK million

1H 2025

1H 2024

2024

Receipts of interest from ongoing operations

247

199

407

Receipts of dividends from ongoing operations

192

33

33

Receipts of interest and dividend from unlisted infrastructure

439

232

440

       

Payments for new investments

-20 387

-4 941

-7 541

Payments for development of infrastructure assets

-260

-436

-681

Receipts from ongoing operations

174

275

608

Net cash flow to/from investments in unlisted infrastructure

-20 472

-5 102

-7 614

       

Net cash flow unlisted infrastructure

-20 033

-4 870

-7 174

Of which cash flow from ongoing operations

613

507

1 048

Of which cash flow to/from other activities

-20 647

-5 378

-8 222

Underlying infrastructure companies

Infrastructure subsidiaries have investments in other non-consolidated, unlisted companies. For further information, see note 16 Interests in other entities in the annual report for 2024.

Table 7.4 specifies the GPFG’s share of net income generated in the underlying infrastructure companies, which is the basis for Income/expense from unlisted infrastructure presented in table 7.1.

Table 7.4 Income from underlying infrastructure companies

Amounts in NOK million

1H 2025

1H 2024

2024

Net income from sale of renewable energy

881

445

1 661

Fees to external fund manager

-11

-

-148

Operating costs in wholly-owned subsidiaries1

-9

-5

-12

Operating costs in joint ventures

-73

2

-226

Interest income/expense

-66

-5

-222

Tax expense

-132

-9

-84

Net income from ongoing operations

590

429

970

       

Unrealised gain/loss2

844

-3 449

-1 503

       

Transaction costs and fees from purchases

-8

-60

-95

       

Net income underlying infrastructure companies

1 426

-3 080

-627

1 Operating costs in wholly-owned subsidiaries are measured against the upper limit from the Ministry of Finance, see note 11 for more information.

2 Unrealised gain/loss presented in table 7.1 includes net income in the underlying infrastructure companies which is not distributed back to the GPFG, and will therefore not correspond to Unrealised gain/loss presented in table 7.4.

Table 7.5 specifies the GPFG’s share of assets and liabilities in the underlying infrastructure companies, which comprises the closing balance for Unlisted infrastructure as presented in table 7.2.

Table 7.5 Assets and liabilities underlying infrastructure companies

Amounts in NOK million

30.06.2025

31.12.2024

Infrastructure assets

48 792

32 582

External debt

-8 434

-9 109

Net other assets and liabilities1

6 998

1 763

Total assets and liabilities underlying infrastructure companies

47 356

25 236

1 Net other assets and liabilities comprise cash, tax and operational receivables and liabilities.

Note 8 Fair value measurement

Fair value for the majority of assets and liabilities is based on quoted market prices or observable market inputs. If the market is not active, fair value is established using valuation techniques that maximise the use of relevant observable inputs. Estimating fair value can be complex and require the use of judgement, particularly when observable inputs are not available. For an overview of valuation models and techniques, as well as definitions and the classification in the three categories in the fair value hierarchy, see note 8 Fair value measurement in the annual report for 2024.

Significant estimates

Classification in the fair value hierarchy is based on set criteria, some of which may require the use of judgement.

Level 3 investments consist of instruments measured at fair value that are not traded or quoted in active markets. Fair value is determined using valuation techniques that use models with significant use of unobservable inputs. A considerable degree of judgement is applied in determining the assumptions that market participants would use when pricing the asset or liability, when observable market data is not available.

The fair value hierarchy

Table 8.1 Categorisation of the investment portfolio by level in the fair value hierarchy

Level 1

Level 2

Level 3

Total

Amounts in NOK million

30.06.2025

31.12.2024

30.06.2025

31.12.2024

30.06.2025

31.12.2024

30.06.2025

31.12.2024

Equities

13 857 030

14 117 497

32 778

33 124

1 732

1 630

13 891 540

14 152 251

Government bonds

2 660 826

2 862 994

417 182

303 122

-

-

3 078 008

3 166 117

Government-related bonds

467 909

415 878

53 316

75 397

931

1 389

522 157

492 665

Inflation-linked bonds

293 427

245 771

40 572

58 021

-

-

333 999

303 792

Corporate bonds

1 307 838

1 277 040

12 578

25 311

1

1

1 320 416

1 302 352

Securitised bonds

287 806

257 841

32 179

47 157

-

-

319 985

304 996

Total bonds

5 017 806

5 059 523

555 827

509 008

932

1 390

5 574 565

5 569 922

Financial derivatives (assets)

3 793

4 051

21 033

28 843

9

10

24 836

32 904

Financial derivatives (liabilities)

-9 303

-9 434

-16 384

-21 795

-

-

-25 687

-31 229

Total financial derivatives

-5 510

-5 383

4 649

7 048

9

10

-851

1 675

Unlisted real estate

-

-

-

-

361 348

355 769

361 348

355 769

Unlisted infrastructure

-

-

-

-

47 356

25 236

47 356

25 236

Other (assets)1

-

-

719 285

1 149 591

-

-

719 285

1 149 591

Other (liabilities)2

-

-

-991 405

-1 499 493

-

-

-991 405

-1 499 493

Market value investment portfolio3

18 869 326

19 171 638

321 134

199 278

411 377

384 035

19 601 838

19 754 950

Total (percent)

96.3

97.1

1.6

1.0

2.1

1.9

100.0

100.0

1 Other (assets) consists of the balance sheet lines Deposits in banks, Secured lending, Cash collateral posted, Unsettled trades (assets), Withholding tax receivable and Other assets.

2 Other (liabilities) consists of the balance sheet lines Secured borrowing, Cash collateral received, Unsettled trades (liabilities) and Other liabilities.

3 Market value investment portfolio is exclusive of Management fee payable/receivable and Deferred tax.

The majority of the total portfolio is priced based on observable market prices. At the end of the first half of 2025, 97.9 percent of the portfolio was classified as Level 1 or 2, which is a marginal decrease compared to year-end 2024.

Equities

Measured as a share of total value, virtually all equities (99.75 percent) were valued based on official closing prices from stock exchanges and were classified as Level 1 at the end of the first half. A small share of equities (0.24 percent) were classified as Level 2. These are mainly equities that are valued based on derived prices. The share of equities valued with significant use of unobservable inputs and classified as Level 3 was 0.01 percent. These are equities that are not listed, or where trading has been suspended and an adjustment has been applied to the last traded price based on company- or country-specific factors.

Bonds

The majority of bonds have observable, executable market quotes in active markets and 90.01 percent of bond holdings were classified as Level 1 at the end of the first half. Bond holdings that do not have a sufficient number of observable quotes or that are priced based on comparable liquid bonds are classified as Level 2. These amounted to 9.97 percent of bond holdings at the end of the first half. An insignificant share of bond holdings (0.02 percent) that did not have observable quotes were classified as Level 3, since the valuation was based on significant use of unobservable inputs.

Unlisted real estate and unlisted renewable energy infrastructure

All investments in unlisted real estate and unlisted renewable energy infrastructure are classified as Level 3, since models are used to value the underlying assets and liabilities, with extensive use of unobservable market inputs. Properties and direct investments in unlisted infrastructure are measured at the value determined by external valuers. Exceptions to this policy are newly acquired investments where the purchase price, excluding transaction costs, is normally considered to be the best estimate of fair value, or where there are indications that the value determined by external valuers does not reflect fair value and adjustments are therefore warranted.

The fund had one investment in an unlisted infrastructure fund at the end of the first half. This was measured at the fair value provided by the fund manager.

Financial derivatives

Some equity derivatives (rights and warrants) and credit derivatives (CDS indices) that are actively traded, are classified as Level 1. The majority of derivatives are classified as Level 2, since the valuation of these is based on standard models using observable market inputs. Certain derivatives are valued based on models with significant use of unobservable inputs and are classified as Level 3.

Other assets and liabilities that are part of the investment portfolio are classified as Level 2.

Movements between the levels in the fair value hierarchy

There were no significant reclassifications of equity holdings between the levels in the fair value hierarchy during the first half.

Bond holdings with a net value of NOK 7 billion were reclassified from Level 1 to Level 2 in the first half. Bonds with a value of NOK 115 billion were reclassified from Level 1 to Level 2, primarily due to reduced liquidity for certain holdings of government bonds. This was partly offset by bonds with a value of NOK 108 billion which were reclassified from Level 2 to Level 1. There were no significant reclassifications of bonds holdings into or out of Level 3 in the first half.

Table 8.2 Changes in Level 3 holdings

Amounts in NOK million

01.01.2025

Purchases

Sales

Settlements

Net gain/loss

Transferred into Level 3

Transferred out of Level 3

Foreign exchange gain/loss

30.06.2025

Equities

1 630

23

-43

-

-164

136

-3

153

1 732

Bonds

1 390

-

-

-29

16

-

-333

-113

932

Financial derivatives (assets)

10

-

-

-

-

-

-

-1

9

Unlisted real estate1

355 769

21 246

-

-

4 408

-

-

-20 075

361 348

Unlisted infrastructure1

25 236

20 472

-

-

986

-

-

661

47 356

Total

384 035

41 741

-43

-29

5 247

136

-336

-19 374

411 377

Amounts in NOK million

01.01.2024

Purchases

Sales

Settlements

Net gain/loss

Transferred into Level 3

Transferred out of Level 3

Foreign exchange gain/loss

31.12.2024

Equities

1 500

23

-33

21

-72

277

-65

-21

1 630

Bonds

916

-

-105

-56

-46

535

-9

155

1 390

Financial derivatives (assets)

4

6

-

-

1

-

-1

-

10

Unlisted real estate1

300 541

40 244

-

-

-11 963

-

-

26 947

355 769

Unlisted infrastructure1

17 593

7 614

-

-

-1 067

-

-

1 096

25 236

Total

320 554

47 887

-138

-35

-13 147

812

-75

28 177

384 035

1 Purchases represent the net cash flow to investments in unlisted real estate and unlisted infrastructure, as presented in the Statement of cash flows.

The share of the portfolio classified as Level 3 was 2.1 percent at the end of the first half, which is a slight increase compared to year-end 2024. The GPFG’s aggregate holdings in Level 3 were NOK 411 377 million at the end of the first half, an increase of NOK 27 342 million compared to year-end 2024. The increase is mainly due to investments in unlisted real estate and unlisted renewable energy infrastructure, which are all classified as Level 3.

Russian equities constituted the majority of equity securities classified as Level 3 at the end of the first half. These securities had a value of NOK 1.4 billion at the end of the first half, compared to NOK 1.2 billion at year-end 2024.

Sensitivity analysis for Level 3 holdings

The valuation of Level 3 holdings involves the use of judgement when determining the assumptions that market participants would use when observable market data is not available.

Unlisted real estate investments constitute the vast majority of holdings classified as Level 3. The effect of using reasonable alternative assumptions for unlisted real estate investments is shown in the sensitivity analysis in table 8.3. For other holdings classified as Level 3, there are no significant changes to sensitivities compared to year-end 2024.

Table 8.3 Additional specification Level 3 and sensitivities – unlisted real estate

Amounts in NOK million

Key assumptions

Change in key assumptions

Specification of Level 3 holdings 30.06.2025

Sensitivities 30.06.2025

Change in key assumptions

Specification of Level 3 holdings 31.12.2024

Sensitivities
31.12.2024

Unfavourable changes

Favourable changes

Unfavourable changes

Favourable changes

Unlisted real estate

Yield

0.25 percentage point

 

-16 949

19 181

0.25 percentage point

 

-16 687

18 885

Market rent

2.0 percent

 

-5 745

5 751

2.0 percent

 

-5 657

5 662

   

361 348

-22 694

24 932

 

355 769

-22 344

24 547

Changes in key assumptions can have a material effect on the valuation of unlisted real estate investments. Several key assumptions are used, of which yields and growth forecasts for future market rents are the assumptions that have the largest impact when estimating property values. This is illustrated in the sensitivity analysis by using other reasonable assumptions for yields and market rents. The sensitivity analysis is based on a statistically relevant sample that is representative for the unlisted real estate portfolio and reflects both favourable and unfavourable changes. At the end of the first half, a change in the yield of 0.25 percentage point, and a change in market rents of 2 percent is viewed as a reasonable range for alternative assumptions.

In an unfavourable outcome, an increase in the yield of 0.25 percentage point, and a reduction in market rents of 2 percent would result in a decrease in value of the unlisted real estate portfolio of approximately NOK 22 694 million or 6.3 percent (6.3 percent at year-end 2024). In a favourable outcome, a reduction in the yield of 0.25 percentage point and an increase in market rents of 2 percent would result in an increase in value of the unlisted real estate portfolio of approximately NOK 24 932 million or 6.9 percent (6.9 percent at year-end 2024). The isolated effects of changes in yields and future market rents are presented in table 8.3.

Changes outside of the ranges specified above are considered to be less reasonable alternative assumptions, however if the range of alternative assumptions were to be expanded, the value changes would be approximately linear.

Note 9 Investment risk

Investment risk comprises market risk, credit risk and counterparty risk. For further information on the framework for investment risk, including the main dimensions and measurement methods used to manage investment risk, see note 9 Investment risk in the annual report for 2024.

Market risk

Market risk is the risk of loss or a change in the market value of the portfolio, or parts of the portfolio, due to changes in financial market variables, real estate and infrastructure values. Norges Bank Investment Management measures market risk both in absolute terms and relative to the benchmark.

Asset class by country and currency

The portfolio is invested across several asset classes, countries and currencies as shown in table 9.1.

Table 9.1 Allocation by asset class, country and currency

Market value in percent by country and currency1

Market value by asset class in percent

Market value by asset class in NOK million

Asset class

Market

30.06.2025

Market

31.12.2024

30.06.2025

31.12.2024

30.06.2025

31.12.2024

Equities

Developed

89.1

 

Developed

89.2

       
 

US

53.8

 

US

54.7

       
 

Japan

6.5

 

Japan

6.6

       
 

UK

4.9

 

UK

5.2

       
 

Germany

3.6

 

Switzerland

3.2

       
 

Switzerland

3.2

 

Germany

3.2

       
 

Total other

17.1

 

Total other

16.3

       
 

Emerging

10.9

 

Emerging

10.8

       
 

China

3.6

 

China

3.3

       
 

Taiwan

2.4

 

India

2.5

       
 

India

2.4

 

Taiwan

2.5

       
 

Brazil

0.4

 

Brazil

0.4

       
 

South Africa

0.4

 

South Africa

0.4

       
 

Total other

1.6

 

Total other

1.7

       

Total equities

         

70.61

71.44

13 841 392

14 112 924

Bonds

Developed

99.7

 

Developed

100.0

       
 

US dollar

52.7

 

US dollar

54.4

       
 

Euro

28.6

 

Euro

27.4

       
 

Japanese yen

6.0

 

Japanese yen

5.9

       
 

British pound

4.6

 

British pound

4.6

       
 

Canadian dollar

3.9

 

Canadian dollar

3.8

       
 

Total other

3.7

 

Total other

4.0

       
 

Emerging2

0.3

 

Emerging2

0.0

       

Total bonds

       

27.09

26.59

5 311 014

5 253 095

Unlisted real estate

US

44.7

 

US

50.0

       
 

UK

22.5

 

UK

20.1

       
 

France

16.5

 

France

14.8

       
 

Germany

5.1

 

Germany

5.0

       
 

Switzerland

3.0

 

Switzerland

3.0

       
 

Total other

8.2

 

Total other

7.2

       

Total unlisted real estate

       

1.86

1.84

365 194

363 583

Total unlisted infrastructure

       

0.43

0.13

84 238

25 348

Market value investment portfolio3

         

19 601 838

19 754 950

1 Market value in percent by country and currency includes derivatives and cash.

2 The share of individual emerging market currencies in the fixed income portfolio is insignificant.

3 Market value investment portfolio is exclusive of Management fee payable/receivable and Deferred tax.

At the end of the first half, the equity portfolio’s share of the fund was 70.6 percent, compared to 71.4 percent at year-end 2024. The bond portfolio’s share of the fund was 27.1 percent, compared to 26.6 percent at year-end. The unlisted real estate portfolio’s share of the fund was 1.9 percent, compared to 1.8 percent at year-end. The share of unlisted infrastructure in the fund was 0.4 percent, compared to 0.1 percent at year-end.

Volatility

Risk measures are used to quantify the risk of value changes associated with all or parts of the portfolio. One of the risk measures is expected volatility. Expected volatility measures the expected annual fluctuation in returns, expressed as one standard deviation. The measure takes the correlation between different investments in the portfolio into account. This risk measure provides an estimate of how much the current portfolio value can be expected to fluctuate during the course of a year, based on market conditions over the past three years. In two out of three years, the portfolio’s return is expected to fall within the negative and positive value of the metric. Expected volatility can be expressed in terms of the portfolio’s absolute or relative risk.

All the fund’s investments are included in the calculations of expected relative volatility and are measured against the fund’s benchmark index consisting of global equity and bond indices.

Tables 9.2 and 9.3 present risk both in terms of the portfolio’s absolute risk and the relative risk.

Table 9.2 Portfolio risk, expected volatility, percent

Expected volatility, actual portfolio

30.06.2025

Min 2025

Max 2025

Average 2025

31.12.2024

Min 2024

Max 2024

Average 2024

Portfolio

11.4

10.5

11.4

11.0

11.2

10.2

11.3

10.8

Equities

13.8

12.7

13.9

13.4

13.9

12.4

14.0

13.1

Bonds

10.7

10.6

11.2

10.8

10.7

10.7

11.1

10.9

Unlisted real estate

13.9

13.7

14.1

13.9

13.8

12.7

13.9

13.1

Unlisted infrastructure

10.4

10.4

25.7

14.6

23.9

23.9

54.0

39.6

Table 9.3 Relative risk measured against the fund's reference index, expected relative volatility, basis points

Expected relative volatility

30.06.2025

Min 2025

Max 2025

Average 2025

31.12.2024

Min 2024

Max 2024

Average 2024

Portfolio

43

42

45

44

44

34

44

37

Risk measured as expected volatility indicates an expected annual fluctuation in the value of the fund of 11.4 percent, or approximately NOK 2 200 billion at the end of the first half, compared to 11.2 percent at year-end 2024. Expected volatility for the equity portfolio was 13.8 percent at the end of the first half, down from 13.9 percent at year-end, while expected volatility for the bond portfolio was 10.7 percent, unchanged from year-end.

The fund’s management mandate specifies that expected relative volatility shall not exceed 1.25 percentage points. The fund’s expected relative volatility was 43 basis points at the end of the first half, compared to 44 basis points at year-end 2024.

Expected shortfall is a tail risk measure that quantifies the expected loss of a portfolio in extreme market situations. Expected shortfall measured on relative returns provides an estimate of the annual expected relative underperformance versus the benchmark index. The expected shortfall is calculated at the 97.5 percentile, indicating the average loss when outcomes fall within the worst 2.5 percent of the return distribution. The expected shortfall is defined as the annualised average relative return for the 2.5 percent worst weekly relative returns since January 2007 until the end of the last accounting period, measured in the currency basket.

The Executive Board has determined that the fund shall be managed in such a way that the annual expected shortfall measured against the benchmark index does not exceed 3.75 percentage points. At the end of the first half, expected shortfall was 1.13 percentage points, compared to 1.18 percentage points at year-end 2024.

Credit risk

Credit risk is the risk of losses resulting from issuers of bonds defaulting on their payment obligations. Fixed-income instruments in the portfolio’s benchmark index are all rated investment grade by one of the major credit rating agencies. Investments in bonds are made based on internal assessments with regards to expected return and risk profile.

Table 9.4 Bond portfolio specified by credit rating

Amounts in NOK million,
30.06.2025

AAA

AA

A

BBB

Lower rating

Total

Government bonds

574 680

1 948 686

376 697

128 206

47 194

3 075 463

Government-related bonds

256 091

200 956

35 875

27 096

2 140

522 157

Inflation-linked bonds

66 081

231 572

14 970

19 925

1 450

333 999

Corporate bonds

5 047

96 420

625 746

571 002

22 202

1 320 416

Securitised bonds

287 421

30 997

1 567

-

-

319 985

Total bonds1

1 189 321

2 508 631

1 054 855

746 228

72 986

5 572 020

Amounts in NOK million,
31.12.2024

AAA

AA

A

BBB

Lower rating

Total

Government bonds

729 896

1 925 725

345 833

128 129

35 051

3 164 634

Government-related bonds

266 286

168 844

33 055

22 088

2 392

492 665

Inflation-linked bonds

52 249

216 988

16 470

18 084

-

303 792

Corporate bonds

10 371

93 141

614 581

565 884

18 375

1 302 352

Securitised bonds

270 150

32 744

2 102

-

-

304 996

Total bonds1

1 328 952

2 437 443

1 012 041

734 185

55 818

5 568 439

1 At the end of first half of 2025, bonds received as collateral amounting to NOK 2.5 billion were sold. At year-end 2024, NOK 1.5 billion were sold. These bonds are presented in the balance sheet as a liability under Secured borrowing.

The market value of the bond portfolio increased by NOK 4 billion compared to year-end 2024, to NOK 5 572 billion at the end of the first half. The share of bond holdings categorised with AAA credit rating was reduced to 21.3 percent at the end of the first half, from 23.9 percent at the end of 2024. The reduction in the AAA category was mainly due to reduced holdings of German, Singaporean and Canadian government bonds. Bonds in credit rating categories AA, A and BBB increased somewhat during the period. The share of bond holdings in the Lower rating category increased to 1.3 percent at the end of the first half, from 1.0 percent at year-end. This is mainly due to downgrades of holdings of Colombian government bonds. Overall, the credit quality of the bond portfolio has deteriorated slightly since year-end.

Counterparty risk

Counterparty risk is the risk of loss due to counterparty bankruptcy or other events leading to counterparties defaulting.

Table 9.5 Counterparty risk by type of position

Risk exposure

Amounts in NOK million

30.06.2025

31.12.2024

Derivatives including foreign exchange contracts

126 444

152 047

Securities lending

81 353

105 908

Unsecured bank deposits1

35 396

23 518

Repurchase and reverse repurchase agreements

7 547

14 316

Prime brokerage

2 551

554

Settlement risk towards brokers and long-settlement transactions

17,461

344

Total

270,752

296 687

1 Includes bank deposits in non-consolidated subsidiaries.

Total counterparty risk exposure was reduced to NOK 270.8 billion at the end of the first half, from NOK 296.7 billion at year-end 2024. The reduction is due to lower risk exposure from derivatives and foreign exchange contracts, securities lending and repurchase and reverse repurchase agreements. Risk exposure from securities lending was reduced by 23.2 percent compared to year-end, while counterparty risk exposure from repurchase and reverse repurchase agreements was reduced by 47.3 percent in the same period. Risk exposure from derivatives including foreign exchange contracts was reduced by 16.8 percent compared to year-end, to 126.4 billion kroner. Derivatives and foreign exchange contracts accounted for 46.7 percent of the total risk exposure at the end of the first half. One-third of this exposure was to a clearing house.

Note 10 Foreign exchange gains and losses

Gains and losses on financial instruments are due to changes in the price of the instrument (security element) and changes in foreign exchange rates (foreign exchange element). These are presented separately in the income statement. See note 11 Foreign exchange gains and losses in the annual report for 2024 for further information.

The fund’s market value in Norwegian kroner is impacted by changes in foreign exchange rates. See table 9.1 in note 9 Investment risk for an overview of the market value of the investment portfolio by asset class, country and currency. The change in the fund’s market value due to changes in foreign exchange rates is presented in table 10.1.

Table 10.1 Specification foreign exchange gain/loss

Amounts in NOK million

1H 2025

1H 2024

2024

Foreign exchange gain/loss – USD/NOK

-858 235

288 729

758 950

Foreign exchange gain/loss – EUR/NOK

28 481

38 770

119 705

Foreign exchange gain/loss – GBP/NOK

-22 690

33 569

81 057

Foreign exchange gain/loss – JPY/NOK

-29 074

-72 745

3 936

Foreign exchange gain/loss – CHF/NOK

5 300

-6 496

13 967

Foreign exchange gain/loss – other

-134 084

32 565

94 593

Foreign exchange gain/loss

-1 010 301

314 393

1 072 207

Note 11 Management costs

Management costs comprise all costs relating to the management of the fund. These are mainly incurred in Norges Bank, but management costs are also incurred in subsidiaries of Norges Bank that are exclusively established as part of the management of the GPFG’s investments in unlisted real estate and unlisted renewable energy infrastructure.

Management costs in Norges Bank

The Ministry of Finance reimburses Norges Bank for costs incurred in connection with the management of the GPFG, in the form of a management fee. The management fee is equivalent to the actual costs incurred by Norges Bank, including performance-based fees to external managers, and is expensed in the income statement line Management fee. Costs included in the management fee are specified in table 11.1.

Table 11.1 Management fee

1H 2025

1H 2024

2024

Amounts in NOK million

Basis
points

Basis
points

Basis
points

Salary, social security and other personnel-related costs

1 132

 

1 050

 

2 218

 

Custody costs

216

 

243

 

483

 

IT services, systems, data and information

428

 

410

 

815

 

Research, consulting and legal fees

133

 

113

 

255

 

Other costs

148

 

137

 

282

 

Allocated costs Norges Bank

118

 

115

 

241

 

Base fees to external managers

1 059

 

909

 

1 554

 

Management fee excluding performance-based fees

3 234

3.1

2 977

3.3

5 848

3.3

Performance-based fees to external managers

765

 

1 289

 

1 543

 

Management fee

3 999

4.2

4 267

4.4

7 390

4.1

Management costs in subsidiaries

Management costs incurred in wholly owned subsidiaries consist of costs related to the management of the investments in unlisted real estate and unlisted renewable energy infrastructure. These costs are expensed directly in the portfolio result and are not part of the management fee.

Management costs incurred in non-consolidated subsidiaries are presented in the income statement lines Income/expense from unlisted real estate and Income/expense from unlisted infrastructure. Management costs incurred in consolidated subsidiaries are presented in the income statement line Other income/expense. These costs are specified in table 11.2.

Table 11.2 Management costs subsidiaries

1H 2025

1H 2024

2024

Amounts in NOK million

Basis

points

Basis

points

Basis

points

Salary, social security and other personnel-related costs

27

 

15

 

35

 

IT services, systems, data and information

4

 

3

 

6

 

Research, consulting and legal fees

48

 

26

 

59

 

Other costs

32

 

20

 

49

 

Total management costs, subsidiaries1

110

0.1

64

0.1

149

0.1

Of which management costs non-consolidated subsidiaries

68

 

38

 

88

 

Of which management costs consolidated subsidiaries

43

 

27

 

61

 

1 Costs in the first half of 2025 consisted of NOK 101 million related to investments in unlisted real estate and NOK 9 million related to investments in unlisted infrastructure. For the first half of 2024, NOK 60 million was related to investments in unlisted real estate and NOK 4 million was related to investments in unlisted infrastructure.

Upper limit for reimbursement of management costs

Every year the Ministry of Finance establishes an upper limit for the reimbursement of management costs. Norges Bank is only reimbursed for costs incurred within this limit. Norges Bank is also reimbursed for performance-based fees to external managers. These fees are not measured against the upper limit.

For 2025, total management costs incurred in Norges Bank and its subsidiaries, excluding performance-based fees to external managers, are limited to NOK 8 100 million. In 2024, the limit was NOK 7 100 million.

At the end of the first half, management costs measured against the upper limit amounted to NOK 3 344 million. This consisted of management costs in Norges Bank, excluding performance-based fees to external managers, of NOK 3 234 million and management costs in subsidiaries of NOK 110 million. Total management costs including performance-based fees to external managers amounted to NOK 4 109 million.

Costs measured as a share of assets under management

Annualised costs are also measured in basis points, as a share of average assets under management. Average assets under management are calculated based on the market value of the portfolio in Norwegian kroner at the start of each month in the calendar year.

At the end of the first half, management costs incurred in Norges Bank and its subsidiaries, excluding performance-based fees to external managers, corresponded to 3.2 basis points of assets under management. Management costs including performance-based fees to external managers corresponded to 4.3 basis points of assets under management.

Other operating costs in subsidiaries

In addition to the management costs presented in table 11.2, other operating costs are also incurred in subsidiaries related to the ongoing maintenance, operation and development of the investments. These are not costs related to investing in real estate or renewable energy infrastructure but are costs of operating the underlying investments once they are acquired. Therefore, they are not defined as management costs. Other operating costs are expensed directly in the portfolio result and are not part of the management fee. They are also not included in the costs measured against the upper limit.

Other operating costs incurred in non-consolidated subsidiaries are presented in the income statement lines Income/expense from unlisted real estate and Income/expense from unlisted infrastructure. For further information, see table 6.4 in note 6 Unlisted real estate and table 7.4 in note 7 Unlisted renewable energy infrastructure. Other operating costs incurred in consolidated subsidiaries are presented in the income statement line Other income/expense.

Auditor

Auditor's report

To the Supervisory Council of Norges Bank

Report on Review of Interim Financial Information
Introduction

We have reviewed the accompanying condensed balance sheet of Government Pension Fund Global as of 30 June 2025 and the related condensed income statement, statement of changes in owner’s capital and statement of cash flows for the period 1 January 2025 to 30 June 2025. The Executive Board and management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard (IAS) 34 Interim Financial reporting as adopted by the EU. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard (IAS) 34 Interim Financial reporting as adopted by the EU.

Oslo, 8 August 2025
Ernst & Young AS

Kjetil Rimstad
State Authorized Public Accountant (Norway)

This translation from Norwegian has been prepared for information purposes only.