The outbreak and spread of the coronavirus had enormous consequences for us all. The pandemic had a dramatic impact on the markets in the first quarter, followed by a rapid recovery in the second. The year saw high levels of volatility and considerable variations between sectors. Although global economic growth was hit hard, the fund’s equity investments returned 12.1 percent. Our technology stocks made a particularly strong contribution, returning no less than 41.9 percent.
Chair Øystein Olsen and CEO Nicolai Tangen presented the highlights of 2020 on 28 January. Chief Equity Officer Petter Johnsen and Chief Asset Strategies Officer Geir Øivind Nygård gave a virtual global tour to talk to our portfolio managers and specialists in the equity and fixed-income teams. Chief Real Assets Officer Mie Holstad commented on the real estate market development and Deputy CEO Trond Grande presented the fund’s key figures. The press conference was pre-recorded as a precautionary covid-19 measure.
The fund returned 10.9 percent, or 1,070 billion kroner, in 2020. The fund's total return was 0.27 percentage points higher than the return on the benchmark index.
The equity investments returned 12.1 percent.
The unlisted real estate investments returned -0.1 percent.
The fixed-income investments returned 7.5 percent.
The funds market value was 10,914 billion kroner at the end of 2020, up from 10,088 billion kroner a year earlier.
The equity investments had a market value of 7,945 billion kroner. This was to 72.8 percent of the fund's total value.
The unlisted real estate investments had a market value of 273 billion kroner. This was to 2.5 percent of the fund's total value.
The fixed-income investments had a market value of 2,695 billion kroner. This was to 24.7 percent of the fund's total value.