The total return for 2024 was 1.15 percentage points higher than the benchmark index. Since 2007, active management has generated an annual excess return of 1.0 percentage points, amounting to approximately NOK 60 billion – more than 15% of the fund's total value.
"2024 was a solid year for the fund overall, as we outperformed the market in both equities and fixed income. We have remained disciplined, adhered to our well-established strategies, and seized opportunities in the market to generate excess returns," says Kjetil Houg, CEO of Folketrygdfondet.
Norway Leads the Nordic Region
The Nordic stock market delivered positive returns in 2024. The Norwegian market led the region with a 9.1% increase, followed by Sweden with 8.0% and Finland with 1.1%, while Denmark declined by 5.3%. These figures are measured in local currency.
"In 2024, Norway was lifted by companies such as Kongsberg Gruppen, Schibsted, DNB, Orkla, and Storebrand. This demonstrates that the Oslo Stock Exchange is much more than just oil and gas," says Houg.
More Than 500 Meetings
Folketrygdfondet is an active owner with clear expectations and close dialogue with the companies in its portfolio. In 2024, Folketrygdfondet held 517 meetings with Norwegian and Nordic companies and issuers. The fund also voted at 158 general meetings and 10 bondholder meetings.
"Our ambition is to be a responsible and predictable owner and creditor that contributes to long-term value creation. We set clear requirements and expectations, and we find that good dialogue, nomination committee work, and voting have a positive impact on the companies we invest in," concludes Houg.
Key figures from the report
- Equity portfolio return: 9.3% in 2024, 1.0 percentage points higher than the benchmark index for equities.
- Fixed income portfolio return: 5.1% in 2024, 1.5 percentage points higher than the benchmark index for fixed income.
- Since 2007, Government Pension Fund Norway has achieved an annual return of 7.4%. During this period, active management has generated an annual excess return of 1.0 percentage points, amounting to NOK 60 billion, which represents over 15% of the fund's value.
- Over the past ten years, Government Pension Fund Norway has delivered an annual return of 7.5%.
- Fourth-quarter 2024 return: -0.84%.