Norwegian pension fund takes $3b hit in first quarter due to COVID-19

The Government Pension Fund Norway, which is managed by Folketrygdfondet, recorded a loss of NOK 31.5 billion ($3 billion) in first quarter 2020, equivalent to a return of –11.7 percent. The fund capital totaled NOK 237.3 billion ($22 billion) at quarter-end.

Infection control measures and a sharp slowdown in the global economy triggered falling share prices and an increase in credit premiums towards the end of first quarter 2020.

“Our performance was as expected, given the prevailing market conditions,” says Folketrygdfondet CEO Kjetil Houg.

The –11.7 percent return on the Government Pension Fund Norway was on par with the first-quarter performance of the fund’s benchmark index.

“The Norwegian market felt the effects of the coronavirus situation, sharp depreciation of the Norwegian krone and an unusually severe fall in oil prices, which dropped 66 percent,” noted Houg. “This clearly impacted the fund’s performance.”

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