Norway’s $1.4 trillion government-owned wealth fund has reported a 5.9% investment return in the first quarter, driven by rising stock markets. This translates to $83.89 billion. In a speech, Trond Grande, the fund’s deputy chairman, stated that “this is one of the strongest quarters we have experienced.” He also stated that, despite market turbulence in March due to fears of a new banking crisis, the fund received the most support from stocks, which rose by approximately 8%. Falling interest rates also benefited the bond portfolio, providing a return of approximately 3%. According to Grande, the rise in the stock market was largely due to the technology and consumer sectors.
Despite reporting a loss of 653 billion NOK last year, this year’s first quarter saw an 893 billion NOK ($83.89 billion) profit for the fund. With a population of only 5.5 million people, this translates to over $15,000 per person. Since 1990, the Norwegian Government Pension Fund Global has invested in foreign stocks, bonds, and real estate with the profits from the country’s oil and natural gas production. The government employs only a small portion of the fund’s income, storing the rest for future generations. The fund has investments in more than 70 countries and over 9,338 companies, accounting for 1.3% of global equities. In recent years, the fund has made large investments in renewable energy projects. The fund’s market value reached 12.429 trillion NOK ($1.24 trillion) as of December 31, 2022, which has now surpassed $1.4 trillion this year.
