GOVERNMENT PENSION FUND GLOBAL THIRD QUARTER 218 26 OCTOBER 218 26/1/218
Market value increased to 8,478 billion kroner Billions of kroner. As at 3.9.218 9, Value Percentage share 9, 8, Equity investments 5,732 67.6 8, 7, Unlisted real estate investments 226 2.7 Fixed-income investments 2,52 29.7 7, 6, Fund 8,478 1. 6, Fixed income 5, 5, 4, 4, Real estate 3, 2, 3, 2, Equity 1, 1, 8 9 1 11 12 13 14 15 16 17 18 Source: Norges Bank Investment Management 2
174 billions in return Billions of kroner 6 4 3Q 218 Year to date Return 174 17 Inflow 12 6 4 2 2-2 -2 Return Inflow/withdrawal -4-4 -6 3Q 217 4Q 217 1Q 218 2Q 218 3Q 218-6 Source: Norges Bank Investment Management 3
12 billions in inflow Billions of kroner 6 3Q 218 Year to date 6 Return 174 17 4 Inflow 12 Krone rate -46-181 4 Total 14-11 2 2 Krone rate Return Inflow/withdrawal -2-2 Total -4-4 -6 3Q 217 4Q 217 1Q 218 2Q 218 3Q 218-6 Source: Norges Bank Investment Management 4
2.1 percent in return Measured in the fund s currency basket. Quarterly return. Percent 15 15 1 1 5 5 2.1-5 -5-1 -1-15 8 9 1 11 12 13 14 15 16 17 18-15 Source: Norges Bank Investment Management 5
Return per asset class Measured in the fund s currency basket. Percent 6 6 4 4 2 2 Equity investments Unlisted real estate investments -2 3Q 218 Year to date -2 Fixed-income investments -4-6 Equity investments 3.1 % 3.6 % Unlisted real estate investments 1.9 % 6.4 % Fixed-income investments -.3 % -.7 % 3Q 217 4Q 217 1Q 218 2Q 218 3Q 218-4 -6 Source: Norges Bank Investment Management 6
Fund relative return Quarterly return relative to benchmark index. Percentage points 2.5 2. 1.5 1..5. -.5-1. -1.5-2. 2.5 2. 1.5 1..5. -.5-1. -1.5-2. -.21-2.5 8 9 1 11 12 13 14 15 16 17 18-2.5 Equity and fixed-income investments until end of 216. Source: Norges Bank Investment Management 7
Changes in value since 1996 Billions of kroner 3.9.218 3.6.218 31.12.217 Total inflow of capital* 3,341 3,328 3,337 Total return on fund 4,321 4,147 4,151 Total management fees -43-42 -39 Changes due to fluctuations in krone 858 94 1,4 Market value of the fund 8,478 8,337 8,488 *Total inflow of capital is adjusted for accrued, not paid, management fees. Source: Norges Bank Investment Management 8
Key figures per third quarter Measured in the fund s currency basket. Annualised. Percent Since 1.1.1998 Last 1 years Return on fund 5.98 8.8 Annual inflation 1.79 1.55 Annual management costs.8.8 Annual net real return on fund 4.3 6.36 Source: Norges Bank Investment Management 9
Developments in equity sectors Measured in USD. Indexed total return (31.12.217 = 1) 13 Technology Health care Basic materials Telecommunications Consumer goods 13 3Q 218 6.5 % 1.5 %. % 5.1 %.4 % 12 Year to date 14.7 % 14.3 % -3.1 % -4.1 % -4.8 % 12 Technology 11 11 Health care 1 1 Basic materials Telecommunications 9 9 Consumer goods 8 8 7 7 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Source: FTSE 1
13 12 11 Developments in equity markets Measured in the fund s currency basket (S&P 5 and MSCI Asia Pacific in USD, Stoxx Europe 6 in EUR). Indexed total return (31.12.217 = 1) FTSE Global All Cap index* Equity part of the fund s benchmark index S&P 5 Stoxx Europe 6 MSCI Asia Pacific 3Q 218 4.5 % 3.4 % 7.7 % 1.3 %.5 % Year to date 6. % 4.1 % 1.6 % 1.4 % -2.7 % 13 12 11 FTSE Global All Cap index* Equity part of the fund's benchmark index 1 9 8 1 9 8 S&P 5 (USA) Stoxx Europe 6 (Europe) MSCI Asia Pacific (Asia) 7 7 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 * Excluding Norway Source: Bloomberg 11
1-year government bond yields Percent 3.5 3. 2.5 2. 1.5 1..5. 3.5 3. 2.5 2. 1.5 1..5. Germany US Japan UK Spain Italy -.5 -.5 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Source: Bloomberg 12
1-year government bond yields Percent 22 2 18 16 14 12 1 8 6 4 2 22 2 18 16 14 12 1 8 6 4 2 Turkey Brazil South Africa Indonesia Mexico Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Source: Bloomberg 13
Return figures Table 1. Measured in the fund s currency basket. Percent 3Q 218 Year to date 3.9.218 217 Equity part of the fund s benchmark index 3.41 4.6 18.68 The fund s equity investments 3.15 3.58 19.44 Fixed-income part of the fund s benchmark index -.12 -.45 2.88 The fund s fixed-income investments -.33 -.72 3.31 The fund s unlisted real estate investments 1.89 6.38 7.52 14
Real estate acquisitions and disposals Announced in the third quarter of 218. Unlisted real estate ACQUISITIONS Location Sector Purchase price Share 6 Holborn Viaduct, London Office 3.4 billion kroner 1 percent 51 Boylston Street, Boston Office/retail 2.5 billion kroner 49.9 percent Logistics in Orange County, California Logistics 198 million kroner 45 percent DISPOSALS Location Sector Sales price Share Logistics in Dallas, Texas Logistics 251 million kroner 45 percent 15
Publications in third quarter Ownership 16
Highlights The market value of the fund increased by 14 billion kroner to 8,478 billion kroner The fund returned 2.1 percent in third quarter 218 The return on the fund was.2 percentage point lower than the return on the benchmark index At the end of the quarter, the fund was invested as follows: Equity investments 67.6 percent Unlisted real estate investments 2.7 percent Fixed-income investments 29.7 percent 17
GOVERNMENT PENSION FUND GLOBAL THIRD QUARTER 218 26 OCTOBER 218 26/1/218