Norway’s $1.4 trillion state wealth fund reported a 5.9% investment return in the first quarter, boosted by rising stock markets. This equates to $83.89 billion in profits. In his speech, the company’s Deputy Chairman, Trond Grande, said, “This is one of the strongest neighborhoods we’ve ever experienced.” Despite market turbulence in March due to fears of a new banking crisis, stock markets provided the fund with the strongest support with gains of approximately 8%. Additionally, falling interest rates impacted the bond portfolio, providing a return of about 3%. Grande noted that “The stock market’s rise was largely driven by the technology and consumer sectors.”
While the fund announced a loss of 653 billion NOK last year, they have now reported a profit of 893 billion NOK ($83.89 billion) in the first quarter of this year. This equates to more than $15,000 per capita for a country with a population of 5.5 million. Since 1990, the Norway Wealth Fund has invested the returns on the country’s oil and natural gas production in foreign stocks, bonds, and real estate markets. The Norwegian government uses only a small portion of the fund’s income, and the remainder is preserved for future generations.
The fund has investments in over 9,338 companies across 70 countries, holding a 1.3% share in global stock markets. In recent years, the fund has made significant investments in renewable energy projects. As of December 31, 2022, the fund’s market value was 12.429 trillion NOK ($1.240 trillion), which has now surpassed $1.4 trillion as of this year.
