Equity investments returned 0.7 percent, while fixed-income investments returned 2.5 percent. The return on these investments was 0.1 percentage point lower than the return on the benchmark indices. Investments in real estate returned -1.4 percent.

– After a period of relatively stable markets at the beginning of the quarter, the British decision to leave the EU sparked a sharp decline in Europe. Markets recovered relatively quickly, but with major variations between sectors. Financials, for example, performed weakly, says Trond Grande, Deputy Chief Executive Officer of Norges Bank Investment Management.

Interest rate levels in developed markets fell during the second quarter, and especially after the EU referendum in the UK.

– The fund's fixed-income investments received price gains due to falling interest rates. In the long term, however, lower interest rates have negative implications for future returns on the fixed-income portfolio, says Grande.

In the second quarter 24 billion kroner was withdrawn from the fund. The krone depreciated against the main currencies during the quarter. This increased the value of the fund by 28 billion kroner.

The fund had a market value of 7,177 billion kroner on 30 June, of which 59.6 percent was invested in equities, 37.4 percent in fixed income and 3.1 percent in real estate.

Quarterly report 2Q 2016 (nbim.no)

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