Norway’s $1.4 trillion sovereign wealth fund has reported a 5.9% return on investment in the first quarter, thanks to the rising stock markets, which amounts to $83.89 billion. Trond Grande, the company’s deputy chairman, said in a speech that “This is one of the strongest neighborhoods we’ve ever experienced.” The official also noted that despite the market turbulence in March due to fears of a new banking crisis, the fund received the most support from the market, with the stock market contributing around an 8% gain. In addition, falling interest rates also benefited the bond portfolio, yielding an approximately 3% return.
Grande added that “The rise in the stock market was largely due to the technology and consumer sectors” while providing information on the fund’s performance. Despite reporting a loss of 653 billion NOK last year, the asset fund announced a profit of 893 billion NOK ($83.89 billion) in the first quarter of this year.
Norway’s sovereign wealth fund, which amounts to over $15,000 per capita in a country with a population of 5.5 million, has invested in foreign stocks, bonds, and real estate markets with the revenue from the country’s oil and natural gas production since 1990. The Norwegian government uses only a small portion of the fund’s revenue, while the rest is reserved for future generations.
The fund has investments in over 9,338 companies in 70 countries worldwide and holds a 1.3% stake in global stock markets. In recent years, the fund has made significant investments in renewable energy projects. As of December 31, 2022, the market value of the fund was 12.429 trillion NOK ($1.24 trillion). This year, the value has exceeded $1.4 trillion.
