Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Norway wealth fund hits record 20 trillion crowns

Published 2024-12-06, 10:38 a/m
© Reuters. FILE PHOTO: A view shows the building of Norway’s central bank (Norges Bank) in Oslo, Norway, June 23, 2022.  REUTERS/Victoria Klesty/File Photo
USD/NOK
-
MSFT
-
AAPL
-
NVDA
-

OSLO (Reuters) -The value of Norway's sovereign wealth fund, the world's largest, rose to a record 20 trillion crowns ($1.80 trillion) on Friday, doubling its value in just five years as oil and gas revenue flowed in and stock markets rose.

Built since 1996 as rainy-day savings, the fund owns about 1.5% of all listed stocks globally and has grown to almost four times the size of Norway's annual gross domestic product, far exceeding original projections.

The fund's value was comparable in size to the annual GDP of Australia, a country with five times the population of Norway.

The fund declined to comment.

Norges Bank Investment Management, which operates the fund, invests some 70% of assets in global stocks, about 25% in bonds and the rest in real estate and renewable energy plants, with most of its portfolio tracking international market indexes.

Its current value corresponds to about $321,000 for every man, woman and child living in the country of 5.6 million people.

Its single biggest holding was in U.S. government bonds, amounting to $136 billion or 7.5% of the fund at June 30, while the top corporate holdings were Microsoft Corp (NASDAQ:MSFT) with $41 billion, Apple (NASDAQ:AAPL) Incwith $35 billion and Nvidia (NASDAQ:NVDA) at $34 billion.

The fund hit the 10 trillion crowns milestone in October 2019, and was boosted further in the following years by global economic stimulus during the COVID pandemic and by soaring natural gas prices after Russia's invasion of Ukraine.

© Reuters. FILE PHOTO: A view shows the building of Norway’s central bank (Norges Bank) in Oslo, Norway, June 23, 2022.  REUTERS/Victoria Klesty/File Photo

The strength of the U.S. dollar and the euro also boosted the value of the fund as measured in Norwegian crowns.  

($1 = 11.0855 Norwegian crowns)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.