As in the first quarter, the stock market was characterised by price volatility and substantial differences across sectors. Equity prices fell in Europe, Japan and the US. In the fixed income market, on the other hand, positive performances were recorded in all the main markets.

The return on the Petroleum Fund in the second quarter of 2000 was 0.09 percentage point higher than the return on the benchmark portfolio defined by the Ministry of Finance. This excess return is attributable to good results on the parts of both internal and external managers. The excess return for the first half of the year was 0.47 percentage point.

Measured in NOK, the returns for the second quarter and the first half of the year were 0.2 per cent and 5.5 per cent respectively. However, it is the return measured in terms of the currency basket that best expresses the Fund's international purchasing power, so it is most appropriate to use this figure for measuring the return.

On 30 June 2000, NOK 40 billion was transferred to the Petroleum Fund's international equity and fixed income portfolios, bringing the market value of the combined portfolio to NOK 304.6 billion.