The Norwegian Government Pension Fund Global return fell by 0.41 per cent in the third quarter of 2016 and was down 3.73 per cent in the year to date, it has reported.

In its recent results, the Government Pension Fund Global returned 4 per cent, 240bn kroner in the third quarter of the year. However, return on fixed income investments and return on real estate investments fell by 1.72 per cent and 8.43 per cent respectively.

The bank’s fund had a market value of 7,118bn kroner at the end of Q3, with equity investments accounting for 60.6 per cent of the fund and returning 6 per cent.

European stocks accounted for 37 per cent of the fund’s equities and produced a return of 6.2 per cent. While the UK, which accounts for the Fund’s largest European market with 10.3 per cent of its equity investments, returned 4.6 per cent.

European-dominated government bonds represented 13.1 per cent of the fund’s fixed-income holdings and returned 1.6 per cent, 0.7 per cent in kroner.

“Most markets had positive returns this quarter despite political developments such as the attempted coup in Turkey and increased uncertainty following the UK referendum on EU membership,” Norges Bank, which mamages the fund, reported.

“In Europe, markets were affected by political developments in the third quarter. Uncertainties surrounding the financial strength of Italian banks affected markets somewhat, and uncertainty following the UK vote to leave the EU attracted considerable attention.”

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