Equity investments returned -2.9 percent, while fixed-income investments returned 3.3 percent. The return on these investments was 0.2 percentage point lower than the return on the benchmark indices. Investments in real estate returned -1.3 percent.

– The two first months of 2016 were characterized by high market volatility and concerns for a Chinese slowdown.The turbulence eased considerably in March, says Trond Grande, deputy Chief Executive Officer of Norges Bank Investment Management.

Positive returns for the fund's fixed-income investments contributed to halting the negative trend in the first quarter.

– Falling interest rates resulted in price gains on the fund's fixed-income investments. However, lower interest rates have negative long-term implications for future returns on the fixed-income portfolio, says Grande.

The government withdrew money from the fund for the first time. The withdrawals amounted to 25 billion kroner in the first quarter. The krone appreciated against the main currencies during the quarter. This decreased the value of the fund by 286 billion kroner.

The fund had a market value of 7,079 billion kroner on 31 March 2016, of which 59.8 percent was invested in equities, 37.0 percent in fixed income and 3.1 percent in real estate.

Quarterly report 1Q 2016 (nbim.no)

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