Norwegian Sovereign Wealth Fund’s Remarkable 10% Return and Record-breaking Value

2023-08-15 20:20:12

This performance represents a return of 10% and helped bring the value of the fund to the dizzying sum of 15.299 billion crowns (1.332 billion euros) at the end of June.

In six months, the fund has virtually erased the colossal loss (1.637 billion crowns) suffered last year due to the war in Ukraine and the global economic deterioration.

Supposed to grow the oil and gas revenues of the Norwegian state to finance the future expenses of the generous welfare state, it is mainly invested in equities (71.1% of the portfolio), bonds (27.1%) and to a lesser extent in real estate (2.3%).

Investments in equities experienced a return of 13.66% thanks in particular to technology and luxury stocks, those in bonds had a return of 2.25%, while real estate investments, affected by the rise in interest rates interest, lost 4.57%.

The Bank of Norway was originally due to publish the half-yearly results on Wednesday morning but these were mistakenly sent to the media on Tuesday evening.

Since the beginning of the year, the huge woolen stocking has also benefited, to the tune of 980 billion crowns, from the weakening of the Norwegian krone which has mechanically increased the value of assets held in dollars, euros and other currencies. foreign.

The state has also supplemented its coffers with 389 billion crowns.

In total, the fund therefore saw its value swell by 2.870 billion crowns over the first six months of the year.

According to the Sovereign Wealth Fund Institute, the Norwegian sovereign wealth fund is the largest in the world, just ahead of two Chinese funds.

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