Reports

Strong return on the fund's investments

The fund’s market value grew by a record 3,336 billion kroner in 2023. The increase was mainly due to a strong return on 2,222 billion kroner and a weak krone. This took the fund past the 16 trillion kroner mark for the first time.

CEO Nicolai Tangen and Deputy CEO Trond Grande presented the annual key figures for 2023. We also heard from various experts in the fund, who provided a deeper insight into some specific areas and sectors of relevance in the year that has passed. The press conference was held on 30 January.

The fund's return in 2023

16.1%
2,222
billion kroner

 

The Government Pension Fund Global returned 16.1 percent, or 2,222 billion kroner, in 2023. The return in kroner was the largest in the fund's history. This was -0.18 percentage point, or 26 billion kroner, lower than the return on the benchmark index.

Return by asset class

Despite strong inflation, rising policy rates and geopolitical turmoil, the stock market rallied in 2023. The return on fixed-income investments were affected by rising yields for much of the year before dropping back in the last two months.

The return on investments in unlisted real estate were affected by lower valuation in the wake of higher real interest rates and reduced demand for office space since the pandemic. The positive return on unlisted renewable energy infrastructure was due primarily to net income from sales of power.
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The fund's market value at the end of 2023

15,765
billion kroner

The fund’s market value grew by a record 3,336 billion kroner in 2023. A strong return on the fund’s equity investments made the greatest contribution to this growth. The krone also weakened against many of the currencies the fund is invested in, and there was an inflow of capital from the government. 

Equities
11,174
billion kroner
70.9%
of the fund
Fixed income
4,272
billion kroner
27.1%
of the fund
Unlisted real estate
301
billion kroner
1.9%
of the fund
Unlisted infrastructure
18
billion kroner
0.1%
of the fund

The fund’s investments spanned 72 countries and 43 currencies

At the end of 2023, the fund was invested in 8,859 listed companies, 6,378 bonds, 897 properties and four wind farms. We have published detailed information on all investments since the fund was established in 1998.

In 2023, we were named the world's most open and transparent investment fund in the Global Pension Transparency Benchmark. This ranking provides real motivation to continue to be as open as possible.
Nicolai Tangen
CEO of Norges Bank Investment Management

Strong year for equity investments

US technology stocks in particular contributed to the positive return on the fund's equity investments. The sector benefited from efficiencies and increased demand for new AI solutions from the biggest internet and software companies and their semiconductor suppliers. Consumption and economic activity generally held up over the year despite higher prices and rising interest rates. Despite fears of recession, demand for products within the industrials sector remained strong.

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Responsible investment 2023

We publish a separate report on the responsible investment management of the fund every year.

Long-term ownership in a changing world

2023 was marked by war, the climate crisis and inflation. The fund is a long term, clear and predictable owner in a changing world. We made progress in line with our climate action plan. We also looked in detail at responsible artificial intelligence and how it is relevant to us as investor, and we continued to increase our voting transparency.

Scenario analyses

Each year, we publish the results of analyses of a number of hypothetical scenarios. These scenarios may change from year to year to reflect market developments and events that could impact economic performance. In 2023, we analysed three potential scenarios that could have a significant adverse impact on the fund’s value over time:

Debt crisis

High real interest rates and high public and private debt trigger a deep and long recession in both developed and emerging markets. This could hit the real estate sector particularly hard. High levels of debt limit governments’ ability to combat the recession.

Divided world

Tensions between countries increase, resulting in a protracted geoeconomic conflict. A splintering into two economic blocs leads to a persistent decrease in growth and higher inflation. Trade and capital flows between the two blocs decline permanently. Competition between the blocs means that investment in strategic sectors grows.

Repricing of risk

Equity risk premiums – or the compensation that investors receive for taking risk in the stock market – appears to be at historically low levels. Inflation does not come down, and central banks have to manage a difficult trade-off between stimulating economic growth and fighting inflation.

Explore the full report

Read more about the investments, results and the management organisation. The annual report also includes the financial statements for 2023.

Additional information

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