"The Executive Board is satisfied that the return both in 2016 and over a longer period as been good. The Board is also satisfied that management costs have been kept at low levels despite the gradual expansion of investments into new markets", says Øystein Olsen, Chairman of the Executive Board of Norges Bank.

Equity investments returned 8.7 percent and fixed-income investments 4.3 percent. The overall return on the fund's equity and fixed-income investments was 0.1 percentage point higher than the return on the benchmark index. Real estate investments returned 0.8 percent.

"The return in 2016 was characterised by falling international interest rates in the first half of the year, and strong equity markets in the second half. The year began with a downturn in the markets, and uncertainty regarding developments in China. Three weeks into the year, global equity markets were down by 10 percent. The markets stabilised through the year, and also in 2016 the equity investments returned well", says Yngve Slyngstad, CEO of Norges Bank Investment Management.

The krone strengthened against many of the main currencies during the year, which reduced the fund's value by 306 billion kroner. Net withdrawals from the fund was 101 billion kroner. The first inflow to the fund was in May 1996. The first withdrawal was in January 2016.

The fund had a market value of 7,510 billion kroner at 31 December 2016, of which 62.5 percent was invested in equities, 34.3 percent in fixed income and 3.2 percent in real estate.

Annual report 2016

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