Both equities and fixed income contributed positively to the return. The equity portfolio is up 10.6% so far this year, while the fixed-income portfolio has risen by 1.1% during the same period. The half-year result is 0.47 percentage points higher than the benchmark index.
“We delivered a high return in the first half of the year, outperforming the market. On the equity side, several of our strategies have contributed. Continued narrowing of credit spreads is the largest contributor to the fixed-income portfolio,” says CEO Kjetil Houg.
For the second quarter, the result was 3.81%, which is 0.12 percentage points lower than the benchmark index.
Denmark remains the strongest in the Nordics
The Nordic stock market also delivered a positive return in the second quarter. The Danish market rose by 8.2%, followed by the Norwegian market with a 7.1% increase. The Finnish and Swedish markets ended up 4.1% and 2.5%, respectively, for the quarter.
“The diverse sector composition in the Nordics helps the portfolio perform well. Technology, industry, and healthcare had the highest returns in the portfolio in the first quarter, while the energy sector lifted the results in the second quarter,” says Houg.
Key figures from the report
- The return on the equity portfolio was 5.86% in the second quarter, 0.45 percentage points lower than the equity benchmark index.
- The return on the fixed-income portfolio was 0.42% in the second quarter, 0.44 percentage points higher than the fixed-income benchmark index.
Since 2007, Folketrygdfondet's active management has contributed more than NOK 57 billion in excess returns to the community.