Returns
The fund seeks to achieve the highest possible longterm return with an acceptable risk.
Returns in international currency
The fund is invested in international securities. Returns are generally measured in international currency – a weighted combination of the currencies in the fund’s benchmark index for equities and bonds. The fund’s currency basket consisted of 34 currencies at the end of the third quarter of 2017. Unless otherwise stated, the results are measured in this currency basket.
The Norwegian government first transferred capital to the fund in May 1996. By the end of the third quarter of 2017, the fund had received a total of 3,351 billion kroner and amassed a cumulative return of 3,814 billion kroner.
The fund generated an annual return of 6.0 percent between 1 January 1998 and the end of the third quarter of 2017. After management costs and inflation, the annual return was 4.1 percent.
Annual return and accumulated annualised return
In percent. 2017 values as at 30 September
Annual return
By asset class, in percent. 2017 values as at 30 September
Return figures
Percent
3Q 2017  Yeartodate 30.09.2017  2016  2015  2014  2013  2012  
^{1 }From 2017, the return on real estate investments includes exclusively unlisted real estate investments. ^{2 }The return on real estate investments measured in international currency has been adjusted downwards for 2015 by 0.01 percentage point. This is due to an error caused by the use of an incorrect Thai Baht rate in December 2015 to measure returns in the fund’s currency basket. This correction has no impact on the income statement or balance sheet of the Government Pension Fund Global for 2015. ^{3 }Relative return on fund includes real estate investments from 01.01.2017. Relative return prior to 2017 is calculated on the aggregated equity and fixedincome investments. 

Returns in international currency  
Return on equity investments  4.31  13.79  8.72  3.83  7.90  26.28  18.06 
Return on fixedincome investments  0.85  2.77  4.32  0.33  6.88  0.10  6.68 
Return on real estate investments^{1}  2.68  5.44  0.78  9.99^{2}  10.42  11.79  5.77 
Return on fund  3.15  9.83  6.92  2.74  7.58  15.95  13.42 
Relative return on fund (percentage points)^{3}  0.10  0.50  0.15  0.45  0.77  0.99  0.21 
Management costs  0.01  0.04  0.05  0.06  0.06  0.07  0.06 
Return on fund after management costs  3.14  9.79  6.87  2.68  7.52  15.88  13.35 
Returns in kroner 

Return on equity investments  0.40  10.41  3.67  16.77  24.61  36.26  11.07 
Return on fixedincome investments  2.93  0.29  0.53  12.83  23.43  8.01  0.36 
Return on real estate investments^{1}  1.16  2.31  3.91  23.71  27.51  20.62  0.50 
Return on fund  0.71  6.57  1.95  15.54  24.23  25.11  6.70 
Accumulated return
Since 1996, in billions of kroner
As At 30.09.2017  2016  2015^{1}  2014  2013  2012  

^{1 }The distribution between returns on equity and fixedincome investments has been corrected and therefore differs from previously reported figures. ^{2 }From 2017, the return on real estate investments includes exclusively unlisted real estate investments. 

Return on equity investments  2,747  2,129  1,786  1,567  1,242  579 
Return on fixedincome investments  1,019  955  859  761  551  528 
Return on real estate investments^{2}  49  38  31  14  5  0 
Total return  3,814  3,123  2,676  2,343  1,799  1,107 
Key figures
In billions of kroner
3Q 2017  Yeartodate 30.09.2017  2016  2015  2014  2013  2012  

^{1 }Includes exclusively unlisted real estate investments from 2017. ^{2 }The fund’s market value shown in this table does not take into account the management fee. Owner’s capital in the financial statements equals the fund’s market value less accrued, not paid, management fees. ^{3 }Paid management fees are specified separately, and not included in Inflow/withdrawal of capital. ^{4} Total inflow of capital shown in this table is adjusted for accrued, not paid, management fees. ^{5 }Management costs at subsidiaries are not included in the management fees. Management costs at subsidiaries have been deducted from the fund’s return before management fees. 

Market value  
Market value of equity investments  5,242  5,242  4,692  4,572  3,940  3,107  2,336 
Market value of fixedincome investments  2,511  2,511  2,577  2,668  2,350  1,879  1,455 
Market value of real estate investments^{1}  199  199  242  235  141  52  25 
Market value of fund^{2}  7,952  7,952  7,510  7,475  6,431  5,038  3,816 
Accrued, not paid, management fees^{2}  3  3  4  4  3  3  2 
Owner's capital^{2}  7,949  7,949  7,507  7,471  6,428  5,035  3,814 
Inflow/withdrawal of capital^{3}  10  46  101  46  150  241  279 
Paid management fees^{3}  0  4  4  3  3  2  3 
Return on fund  192  691  447  334  544  692  447 
Changes due to fluctuations in krone  250  199  306  668  702  291  220 
Total change in market value  68  442  35  1,044  1,393  1,222  504 
Changes in value since first capital inflow in 1996  
Total inflow of capital^{4}  3,351  3,351  3,397  3,499  3,452  3,302  3,060 
Return on fund  3,814  3,814  3,123  2,676  2,343  1,799  1,107 
Management fees^{4}  38  38  35  31  27  24  21 
Changes due to fluctuations in krone  826  826  1,025  1,331  663  39  331 
Market value of fund  7,952  7,952  7,510  7,475  6,431  5,038  3,816 
Return after management costs  3,776  3,776  3,088  2,645  2,316  1,775  1,087 
Historical key figures
As at 30 September 2017. Annualised data
Since 01.01.1998  Last 10 years  Last 5 years  Last 3 years  Last 12 months^{2}  

^{1} Based on aggregated equity and fixedincome investments until end of 2016. ^{2} Key figures for risk and riskadjusted return are based on monthly observations. When relatively few observations are used, as for «Last 12 months», the risk estimates have high uncertainty. ^{3} Sharpe ratio is a measure for riskadjusted return. ^{4} 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. 

Fund return (percent)  5.98  5.73  9.23  7.29  12.21 
Relative return on fund (percentage points)^{1}  0.27  0.08  0.29  0.34  0.81 
Annual price inflation (percent)  1.76  1.73  1.21  1.02  1.68 
Annual management costs (percent)  0.09  0.08  0.06  0.06  0.06 
Net real return on fund (percent)  4.06  3.85  7.86  6.15  10.30 
Key figures for risk and riskadjusted return^{2}  
The fund's actual standard deviation (percent)  7.36  9.05  5.90  6.25  2.68 
Standard deviation difference. Fund versus benchmark index (percentage points)^{1}  0.39  0.58  0.11  0.08  0.19 
The fund's Sharpe ratio (percent)^{3}  0.57  0.62  1.51  1.12  4.13 
Sharpe ratio^{3} difference. Fund versus benchmark index (percentage points)^{1}  0.01  0.03  0.02  0.04  0.53 
The fund's tracking error (percentage points)^{1}  0.70  0.90  0.37  0.33  0.29 
The fund's information ratio (IR)^{1,4}  0.41  0.15  0.72  0.97  2.49 
5 year periods
19982002  20032007  20082012  20132017  

^{1 }Based on aggregated equity and fixedincome investments until end of 2016. ^{2 }Key figures for risk and riskadjusted return are based on monthly observations. When relatively few observations are used, as for «Last 12 months», the risk estimates have high uncertainty. ^{3 }Sharpe ratio is a measure for riskadjusted return. ^{4 }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. 

Fund return (percent)  3.19  8.92  3.14  8.98 
Relative return on fund (percentage points)^{1}  0.41  0.40  0.01  0.27 
Annual price inflation (percent)  1.46  2.30  2.01  1.26 
Annual management costs (percent)  0.08  0.10  0.10  0.06 
Net real return on fund (percent)  1.62  6.37  1.01  7.57 
Key figures for risk and riskadjusted return^{2}  
The fund's actual standard deviation (percent)  6.13  3.82  11.31  6.03 
Standard deviation difference. Fund versus benchmark index (percentage points)^{1}  0.12  0.17  0.86  0.12 
The fund's Sharpe ratio (percent)^{3}  0.12  1.51  0.30  1.44 
Sharpe ratio^{3} difference. Fund versus benchmark index (percentage points)^{1}  0.07  0.03  0.01  0.02 
The fund's tracking error (percentage points)^{1}  0.43  0.42  1.20  0.38 
The fund's information ratio (IR)^{1,4}  0.96  0.91  0.09  0.67 
Equity  annualised data*
Since 01.01.1999  Last 10 years  Last 5 years  Last 3 years  Last 12 months^{1}  

* The definition of asset classes and benchmark indices follows mandate given by the Ministry of Finance ^{1} Key figures for risk and riskadjusted return are based on monthly observations. When relatively few observations are used, as for «Last 12 months», the risk estimates have high uncertainty. ^{2} Sharpe ratio is a measure for riskadjusted return. ^{3} The information ratio (IR) is the ratio of average monthly relative return to the tracking error. The IR indicates how much relative return has been achieved per unit of relative risk. 

Return on equity investments (percent)  5.96  5.15  12.88  9.69  19.38 
Return on equity benchmark index (percent)  5.47  4.98  12.48  9.18  18.65 
Relative return on equity investments (percentage points)  0.50  0.18  0.40  0.51  0.73 
Key figures for risk and riskadjusted return^{1}  
Standard deviation for equity investments (percent)  14.35  15.15  9.26  10.03  3.72 
Standard deviation for equity benchmark index (percent)  14.01  14.75  9.06  9.85  3.83 
Standard deviation difference. Equity investments versus benchmark (percentage points)  0.34  0.39  0.20  0.19  0.11 
Sharpe ratio^{2} for equity investments (percent)  0.36  0.39  1.34  0.95  4.67 
Sharpe ratio^{2} for equity benchmark index (percent)  0.33  0.38  1.33  0.92  4.37 
Sharpe ratio^{2} difference. Equity investments versus benchmark (percentage points)  0.03  0.01  0.01  0.03  0.30 
Tracking error for equity investments (percentage points)  0.78  0.68  0.45  0.42  0.33 
Information ratio (IR)^{3} for equity investments  0.67  0.34  0.84  1.16  1.90 
Equity  5 year periods*
19992002  20032007  20082012  20132017  

* The definition of asset classes and benchmark indices follows mandate given by the Ministry of Finance. ^{1} Key figures for risk and riskadjusted return are based on monthly observations. ^{2} Sharpe ratio is a measure for riskadjusted return. ^{3} The information ratio (IR) is the ratio of average monthly relative return to the tracking error. The IR indicates how much relative return has been achieved per unit of relative risk. 

Return on equity investments (percent)  4.85  16.28  0.59  12.51 
Return on equity benchmark index (percent)  5.63  15.37  0.59  12.14 
Relative return on equity investments (percentage points)  0.78  0.90  0.01  0.37 
Key figures for risk and riskadjusted return^{1}  
Standard deviation for equity investments (percent)  16.88  9.24  19.11  9.47 
Standard deviation for equity benchmark index (percent)  16.55  9.00  18.60  9.26 
Standard deviation difference. Equity investments versus benchmark (percentage points)  0.33  0.24  0.51  0.20 
Sharpe ratio^{2} for equity investments (percent)  0.44  1.38  0.05  1.28 
Sharpe ratio^{2} for equity benchmark index (percent)  0.50  1.32  0.04  1.27 
Sharpe ratio^{2} difference. Equity investments versus benchmark (percentage points)  0.06  0.05  0.00  0.01 
Tracking error for equity investments (percentage points)  1.00  0.76  0.84  0.46 
Information ratio (IR)^{3} for equity investments  0.87  1.07  0.13  0.77 
Fixed income  annualised data*
Since 01.01.1998  Last 10 years  Last 5 years  Last 3 years  Last 12 months^{1}  

* The definition of asset classes and benchmark indices follows mandate given by the Ministry of Finance. ^{1} Key figures for risk and riskadjusted return are based on monthly observations. When relatively few observations are used, as for «Last 12 months», the risk estimates have high uncertainty. ^{2} Sharpe ratio is a measure for riskadjusted return. ^{3} The information ratio (IR) is the ratio of average monthly relative return to the tracking error. The IR indicates how much relative return has been achieved per unit of relative risk. 

Return on fixedincome investments (percent)  4.80  4.48  3.10  3.03  0.35 
Return on fixedincome benchmark index (percent)  4.63  4.36  3.11  3.00  0.56 
Relative return on fixedincome investments (percentage points)  0.16  0.13  0.00  0.02  0.91 
Key figures for risk and riskadjusted return^{1}  
Standard deviation for fixedincome investments (percent)  3.34  3.57  2.68  2.83  2.94 
Standard deviation for fixedincome benchmark index (percent)  3.20  3.31  2.93  3.05  3.09 
Standard deviation difference. Fixedincome investments versus benchmark (percentage points)  0.13  0.27  0.24  0.22  0.15 
Sharpe ratio^{2} for fixedincome investments (percent)  0.86  1.15  1.10  0.98  0.06 
Sharpe ratio^{2} for fixedincome benchmark index (percent)  0.84  1.20  1.01  0.91  0.35 
Sharpe ratio^{2} difference. Fixedincome investments versus benchmark (percentage points)  0.01  0.05  0.09  0.08  0.29 
Tracking error for fixedincome investments (percentage points)  1.04  1.43  0.47  0.43  0.29 
Information ratio (IR)^{3} for fixedincome investments  0.15  0.09  0.02  0.04  3.13 
Fixed income  5 year periods*
19982002  20032007  20082012  20132017  

* The definition of asset classes and benchmark indices follows mandate given by the Ministry of Finance. ^{1} Key figures for risk and riskadjusted return are based on monthly observations. ^{2} Sharpe ratio is a measure for riskadjusted return. ^{3} The information ratio (IR) is the ratio of average monthly relative return to the tracking error. The IR indicates how much relative return has been achieved per unit of relative risk. 

Return on fixedincome investments (percent)  6.26  4.00  5.87  3.00 
Return on fixedincome benchmark index (percent)  6.09  3.97  5.44  2.99 
Relative return on fixedincome investments (percentage points)  0.17  0.03  0.43  0.01 
Key figures for risk and riskadjusted return^{1}  
Standard deviation for fixedincome investments (percent)  3.06  3.04  4.27  2.74 
Standard deviation for fixedincome benchmark index (percent)  3.05  3.10  3.62  2.99 
Standard deviation difference. Fixedincome investments versus benchmark (percentage points)  0.01  0.05  0.64  0.25 
Sharpe ratio^{2} for fixedincome investments (percent)  0.67  0.36  1.27  1.04 
Sharpe ratio^{2} for fixedincome benchmark index (percent)  0.62  0.34  1.38  0.95 
Sharpe ratio^{2} difference. Fixedincome investments versus benchmark (percentage points)  0.05  0.02  0.11  0.09 
Tracking error for fixedincome investments (percentage points)  0.31  0.37  1.96  0.48 
Information ratio (IR)^{3} for fixedincome investments  0.52  0.08  0.22  0.00 
Return on real estate investments and return objective
2011^{1}  2012  2013  2014  2015  2016  

^{1} In 2011 the portfolio return is based on the 9 month period from March month end to December month end, while the IPD Property Index is based on an interpolation of the IPD annual return.
^{2} For 2011 and 2012 the IPD PanEuropean Annual Property Index is used and the IPD Global Property Index is used as of 2013. The IPD Property Index is excluding Norway. The Index is also adjusted for management cost in subsidiaries and leverage impact to ensure return comparability.


Returns in international currency (percent)  
Return on real estate investments  4.4  5.8  11.8  10.4  10.0  0.8 
Return objective^{2}  1.2  5.9  7.4  9.5  11.9  
Returns in actual real estate currency composition (percent)  
Return on real estate investments  2.6  4.0  7.9  11.6  10.1  3.5 
Return objective^{2}  3.1  4.1  3.7  10.7  12.1 
METHODOLOGY FOR THE CALCULATION OF RETURNS
The methodology for calculating returns on the funds managed by Norges Bank Investment Management is based on the international standard Global Investment Performance Standards (GIPS®). This is GIPS reports and the GIPS compliance manual, including formulae for calculating returns.