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Some fun charts and key points from the latest results of Norway’s enormous sovereign wealth fund. You’re welcome.
1: It’s really enormous. Huge. Ridiculous amounts of money.
Entertainingly, you can track the value of the fund in real time on its homepage. Hypnotic stuff. But as a reminder from today’s results:
That’s about $905bn.
2: It’s pretty happy with the results
The fund generated a return of 6.9 per cent last year, driven by strong returns from equities in the second half of the year. All told, equities delivered returns of 8.7 per cent for the year, with fixed income at 4.3 per cent and real estate at 0.8 per cent. It says:
The Executive Board is satisfied that the return both in 2016 and over a longer period has been good. The Board is also satisfied that management costs have been kept at low levels despite the gradual expansion of investments into new markets.
3: A rally in the krone dented returns, however
The krone strengthened against many of the currencies the fund is invested in, which in isolation decreased its market value by 306 billion kroner.
That’s a relatively large hit, though the fund point out it does not affect the international purchasing power of the fund.
4: Go, Brazil! (But mind the gap in the UK)
Government bonds in emerging markets, which made up 12.9 percent of the portfolio, returned 7.2 percent. Brazil performed particularly well with a return of 60.3 percent, or 29.3 percent in local currency.
The sterling effect in full. First bonds:
And also stocks: