2023-04-21 16:39:27
The Norwegian sovereign wealth fund, which is the largest in the world, recorded gains of $ 84 billion in the first quarter of the year, thanks to the improvement of the stock market following large losses last year, according to what the central bank announced Friday.
The strong performance, equivalent to a yield of 5.9%, offsets regarding half of last year’s massive $165.4 billion loss in the fund in the turmoil of the Ukraine war.
Stocks, which made up 70% of the Norwegian fund’s portfolio in late March, posted gains of 7.4% in the first quarter of the year.
The fund owns stakes in more than 9,200 companies around the world, representing 1.5% of the total market value.
Bond investments, which represent 27.3% of assets, gained 2.7% over the same period.
Real estate holdings in unlisted renewable energy projects declined by 2.4 and 0.1 percent, respectively, by 1 percent and 3.9 percent.
The fund, which is among the world’s largest investors, had a value of $1.34 trillion in late March; That’s roughly $245,000 for each of Norway’s 5.5 million residents.
“Equity investments were the most positive contribution to the quarter’s returns,” Deputy Fund Manager Trond Grand said in a statement.
“The rise in the stock market was largely driven by the technology sector and consumer luxury goods,” he added.
The fund, whose revenues are fueled by Norwegian oil and gas companies, aims to finance future spending in the country whose welfare system is known for its generous welfare.
According to the classification of the Sovereign Wealth Fund Institute, the Norwegian fund ranks first in the world, ahead of the China Investment Corporation and the funds of Abu Dhabi, Kuwait and Singapore.
(AFP)
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