‘The downturn in the third quarter is due to weak development in the market and the announcement of a new ground rent tax on the aquaculture industry,’ says Kjetil Houg, CEO of Folketrygdfondet.
The return on the equities portfolio was minus 5.2 per cent for the quarter. That is 0.1 percentage points lower than the benchmark index for equities. As of 30 September 2022, the return on the equities portfolio was minus 9.4 per cent, which was 0.9 percentage points better than the market.
The equities portfolio recorded a loss of NOK 9.6 billion in the quarter. The value of equities in the aquaculture sector fell by NOK 7.5 billion in the quarter. Around half of this fall in value was due to the market’s reaction to the announcement of a new ground rent tax on aquaculture.
The return on the fixed-income portfolio was minus 2.6 per cent in the quarter, which was 0.2 percentage points lower than the benchmark index for fixed-income investments. As of 30 September 2022, the return on the fixed-income portfolio was minus 9.8 per cent, which is 0.5 percentage points lower than the return on the benchmark index.
Since 2007, Folketrygdfondet’s active management approach has resulted in NOK 40 billion in excess return for society as a whole.