Government Pension Fund Norway (discontinued), 2nd half-year 2000

The increase in the National Insurance Scheme Funds total capital is expressed first and foremost by the increase in loans to the central government. These are represented under loans in Table 1. Total loans at the end of 2000 were NOK 69.8 billion, or 18 per cent higher than in the first half of the year, when the Funds loans amounted to NOK 59.2 billion. Parallel to this we see that holdings of commercial papers fell 16 per cent in the second half of 2000. On 1 January the book value of the Funds commercial papers was NOK 6.9 billion.

National Insurance Scheme Fund portfolio 1995-2000

While the share of loans has increased sharply since 1995, we see from Table 1 that the bond share of the total capital of the Fund has declined considerably. Loans to the central government, which made up 37 per cent of the total capital in 1995, rose to 55 per cent as of 31 December 2000. From 1995 up to today, the National Insurance Scheme Funds holdings of shares and other equities have remained stable at around 10 per cent of the total capital of the Fund.

Highest ever return

National Insurance Scheme Funds funds are placed in "safe" investments such as loans to the central government and bonds. In 2000 the Fund achieved its highest ever return, measured against the yield of the Oslo Stock Exchange. The total capital of the Fund increased by almost 6.7 per cent in the course of 2000, while the all-share index of the Oslo Stock Exchange fell 1.7 per cent.

Tables:

• Table 1 National Insurance Scheme Fund. Balance sheet. 31 December 1995-31 December 2000. Million kroner
• Table 2 National Insurance Scheme Fund. Bonds and shares and other equity by debtor sector. Million kroner