The largest sovereign Fund showed the minimum yield for five years


The yield of Global pension Fund of Norway, operating assets of $830 billion, in 2015 amounted to 2.7%, the worst figure since 2011, according to Financial Times (FT). The publication notes that outcome data was affected by the volatility in global markets, but a plus was able to come at the expense of the shares of Japanese companies and drug manufacturers, the profit outweighed the loss from Brazilian oil assets.

The Fund in its annual report fixed the profitability of investment in shares at 3.8%, bonds — 0.3% and in real estate — 10%. Developing markets showed negative returns of 7%, and Brazilian assets brought losses amounting to 38% of the returns.

In this segment showed positive dynamics only the shares of Russian and Chinese companies. Last year, the first accounted for 0.3% of the Fund’s investments in stocks. Their yield was 8.7%, and in rubles — 26,1%, while in 2014 the figure was minus 40.9 per cent. The largest Russian asset of the Fund is the Cherkizovo group, which belongs to the Norwegians of 5.7%.

Among the individual packages in 2015 the most profitable stocks were Alphabet, Amazon and Microsoft, and the worst result was recorded in Royal Dutch Shell, Glenmore and Santander, follows from statements of the Fund.

Investments by the government last year was the lowest since 1999 and amounted to 42 billion NOK ($4.9 billion), which, as noted by the FT, significantly below the average level of state support over the past 18 years and stayed on average 187 billion kroner a year ($21,79 billion).

The head of the investment Department of Norges Bank Yngve Slyngstad, who controls the Fund, concluded that 2015 was a turbulent year with negative interest rates, volatility in the currency markets, falling oil prices and weak growth prospects in emerging markets.

Over the past two decades, the sovereign Fund of Norway has grown considerably in size and became the largest in the world, the newspaper reminds. But this year the Norwegian government first decided to use its funds to stimulate the economy and replenish the budget.