Norway’s Folketrygdfondet delivered a return of 9.7 per cent for the Government Pension Fund Norway (GPFN), equivalent to NOK 40.1bn, in the first quarter (Q1) of 2026, but its newer Government Fund in Tromsø (SFT) suffered a loss of -10.4 per cent, equivalent to NOK -1.6bn.

The positive result for the GPFN brings its total assets under management (AUM) to NOK 453.7bn, as of 31 March 2026, while the SFT recorded NOK 13.9bn in AUM.

Folketrygdfondet CEO, Kjetil Houg, said: “The first quarter was marked by a significant increase in oil prices, which strongly lifted the Oslo Stock Exchange. This contributed to a strong absolute return for GPFN, but we underperformed the market. For SFT, we report a negative result due to a decline in Nordic small caps, but we outperformed the market.”

During the quarter, the equity portfolio of the GPFN rose by 16.5 per cent and contributed -1.05 percentage points to relative return. The fixed income portfolio declined by 1.2 per cent but contributed 0.04 percentage points.

The remaining 0.01 percentage points came from derivatives strategies and asset allocation.

Houg explained that large Norwegian companies in energy and industry are driving a significant increase when it comes to the equity portfolio.

“The development in the fixed income portfolio is characterised by a repricing of long-term interest rates in light of revised inflation expectations. We leave behind a challenging quarter for our active management, but we are prepared for this to fluctuate over time,” he said.

Since 2007, active management has generated excess returns of 0.95 percentage points per year for the GPFN, corresponding to approximately NOK 74bn, or more than 16 per cent of the fund’s value.

Without compounding, the corresponding figure is NOK 34bn.

On the SFT, Houg said its -10.4 per cent return accounted for a relative return of 0.20 percentage points in Q1.

“Nordic small caps delivered significantly weaker returns than the main index during the quarter, which is unusual. We take a long-term perspective on management and are pleased to be ahead of the market for the second consecutive quarter since the fund was established,” he said.

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