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GOVERNMENT
PENSION FUND
GLOBAL
THIRD QUARTER 2016
28 OCTOBER 2016
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
07 08 09 10 11 12 13 14 15 16
Real estate investments
Fixed-income investments
Equity investments
Market value
Billions of kroner. As at 30.09.2016
2
Value Percentage share
Equity investments 4,317 60.6
Fixed-income investments 2,584 36.3
Real estate investments 218 3.1
Source: Norges Bank Investment Management
Inflow/withdrawal
Billions of kroner
3
-30
44
50
-40
-30
-20
-10
0
10
20
30
40
50
60
-40
-30
-20
-10
0
10
20
30
40
50
60
3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016
Inflow/withdrawal
Average inflow since1998
Average quarterlyinflow past 10 years
Source: Norges Bank Investment Management
-500
-400
-300
-200
-100
0
100
200
300
400
500
-500
-400
-300
-200
-100
0
100
200
300
400
500
3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016
Krone rate
Return
Inflow/withdrawal
Total
Quarterly change in market value
Billions of kroner
4
3Q 2016
Return 240
Inflow/withdrawal -30
Krone rate -269
Total -58
Source: Norges Bank Investment Management
Return
Measured in the fund’s currency basket. Quarterly return.
Percent
5
-15
-10
-5
0
5
10
15
-15
-10
-5
0
5
10
15
07 08 09 10 11 12 13 14 15 16
Quarterly return
Accumulated annualisedreturn since 1998
3Q 2016 4.0%
Last 10 years 5.3%
Since 1998 5.7%
Source: Norges Bank Investment Management
Return on asset classes
Measured in the fund’s currency basket.
Percent
6
-10
-8
-6
-4
-2
0
2
4
6
8
10
-10
-8
-6
-4
-2
0
2
4
6
8
10
3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016
Equity investments
Fixed-income investments
Real estate investments3Q 2016
Equity investments 6.0%
Fixed-income investments 0.9%
Real estate investments 2.3%
Total 4.0%
Source: Norges Bank Investment Management
Relative return
Equity and fixed-income investments.
Percentage points
7
-2,5
-2,0
-1,5
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
-2,5
-2,0
-1,5
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
07 08 09 10 11 12 13 14 15 16
Quarterly relative returns
Accumulated annualisedrelative return
Accumulated annualisedrelative return last 10years
3Q 2016 0.17%
Last 10 years 0.05%
Since 1998 0.25%
Source: Norges Bank Investment Management
Changes in value since 1996
30.09.2016 30.6.2016 31.3.2016
Gross inflow of new capital 3,423 3,452 3,475
Accumulated return 2,925 2,685 2,591
Management costs -34 -33 -32
Changes due to fluctuations in
krone804 1,073 1,045
Market value of the fund 7,118 7,177 7,079
Billions of kroner
8Source: Norges Bank Investment Management
Historical key figures
Since 1.1.1998 Last 10 years
Return on fund 5.66 5.35
Annual inflation 1.76 1.76
Annual management costs 0.09 0.08
Annual net real return on fund 3.75 3.44
Measured in the currency basket. Annualised.
Percent
9Source: Norges Bank Investment Management
80
90
100
110
120
80
90
100
110
120
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
FTSE Global All Cap(global)
Stoxx Europe 600(Europe)
MSCI Asia Pacific(Asia)
S&P 500 (USA)
Developments in equity markets
Measured in USD (Stoxx in EUR). Indexed (31.12.2015 = 100)
10Source: Bloomberg
FTSE
Global All
Cap
S&P 500
Stoxx
Europe
600
MSCI
Asia
Pacific
3Q 2016 4.9% 3.3% 4.0% 8.4%
YTD 2016 5.1% 6.1% -6.3% 5.9%
80
90
100
110
120
130
140
150
80
90
100
110
120
130
140
150
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
Technology
Basic materials
Financials
Utilities
Telecommunications
Developments in equity sectors
Measured in USD. Indexed total return (31.12.2015 = 100)
11
Technology
Basic
materials Financials Utilities
Tele-
communications
3Q 2016 13.4% 9.6% 7.4% -2.6% -1.4%
YTD 2016 13.3% 20.3% 1.7% 12.2% 8.4%
Source: FTSE
95
100
105
110
115
120
95
100
105
110
115
120
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
Dollar
Pound
Yen
Euro
Development for bonds
Measured in local currency. Indexed (31.12.2015 = 100)
12Source: Bloomberg Barclays Indices
Dollar Pound Yen Euro
3Q 2016 0.5% 3.3% -1.8% 1.0%
YTD 2016 5.9% 14.4% 4.7% 5.9%
95
100
105
110
115
120
95
100
105
110
115
120
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16
Government bonds
Government-relatedbonds
Corporate bonds
Securitised debt
Inflation-linked bonds
Price developments for bonds
Measured in USD. Indexed (31.12.2015 = 100)
13
Government
bonds
Government-
related bonds
Corporate
bonds
Securitised
bonds
Inflation-
linked bonds
3Q 2016 0.4% 1.4% 1.9% 0.8% 3.2%
YTD 2016 12.0% 8.8% 8.8% 4.2% 9.8%
Source: Bloomberg Barclays Indices
Real estate investments and disposals
14
Announced in the third quarter of 2016
Location Partner Price Share
Constitution Square,
Washington D.C.MetLife 1.7 billion kroner* 47.5
100 First Street and 303 Second
Street, San FranciscoKilroy Realty Corporation 3.8 billion kroner 44
355-361 Oxford Street, London 1.4 billion kroner 100
Location Partner Price Share
Two logistics properties in the US Prologis 751 million kroner 45
INVESTMENTS
DISPOSALS
*Initial payment of 590 million kroner + projected costs
Highlights
The fund returned 4.0 percent in third quarter 2016
The return on equity and fixed-income investments was 0.2 percentage point
higher than the return on the benchmark indices
The market value of the fund decreased by 58 billion kroner to 7,118 billion kroner
At the end of the quarter, the fund was invested as follows:
• Equity investments 60.6 percent
• Fixed-income investments 36.3 percent
• Real estate investments 3.1 percent
15
GOVERNMENT
PENSION FUND
GLOBAL
THIRD QUARTER 2016
28 OCTOBER 2016