Norges Bank

Press release

Return of 1.0 per cent on the Petroleum Fund in the first quarter

The return on the Government Petroleum Fund in the first quarter of 2005 was 1.0 per cent measured in terms of the currency basket that corresponds to the composition of the Fund's benchmark portfolio. Prices rose in the bond and equity markets in Japan and Europe, whereas prices in both markets fell somewhat in the US. The returns on the fixed income and equity portfolios were 0.4 per cent and 2.0 per cent, respectively.

In the first quarter of 2005, the return on the Petroleum Fund was 0.13 percentage point higher than the return on the benchmark portfolio defined by the Ministry of Finance.

The market value of the Petroleum Fund's combined securities portfolio was NOK 1 090.1 billion at the end of the first quarter. This is an increase of NOK 74 billion during the quarter. The increase since the beginning of the year is due partly to the transfer of new capital (NOK 46 billion), partly to the return in capital markets (NOK 11 billion) and partly to the depreciation of the krone (NOK 17 billion). However, the change in the krone exchange rate has no effect on the Fund's international purchasing power.

For further information, please contact:
Knut Kjær, Executive Director, Norges Bank Investment Management, Tel. +47 22 31 60 00

The quarterly report is published on www.nbim.no.

Contact:

Press telephone: +47 21 49 09 30
Email: presse@norges-bank.no

Published 19 May 2005 10:00