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Solid return in second quarter of 2007

The return on the Government Pension Fund – Global was 2.2 per cent in the second quarter. The advance in international equity markets contributed to the return, particularly in Europe, the US and emerging markets. The return on the international equit

21 August 2007

The return on the Government Pension Fund - Global in the first half of the year was 3.7 per cent.

In the second quarter, Norges Bank outperformed the benchmark portfolio defined by the Ministry of Finance by 0.29 percentage point. The excess return for the first half of the year was 0.38 percentage point.

The market value of the Fund increased from NOK 1 876.2 billion to NOK 1 939.4 billion in the course of the second quarter. New capital equivalent to NOK 67.5 billion was transferred to the Fund. The return on investments was NOK 41.6 billion, while a stronger krone in relation to the investment currencies reduced the market value by NOK 45.9 billion. However, the change in the krone exchange rate has no effect on the Fund’s international purchasing power.

The second quarter return on Norges Bank’s long-term foreign exchange reserves was 2.3 per cent, while the return on the Government Petroleum Insurance Fund was -0.5 per cent in the second quarter. This fund is only invested in fixed income instruments.

The capital in the portfolios managed by Norges Bank Investment Management (NBIM) totalled NOK 2 183 billion. The long-term foreign exchange reserves accounted for NOK 224 billion of this amount and the Petroleum Insurance Fund for NOK 16 billion.

For further information, please contact:

Ms Siv Meisingseth, Director of Communications, tel. +47 22 31 63 50, or Mr Knut N. Kjær, Executive Director, Norges Bank Investment Management, tel. +47 22 31 60 00.