© Reuters. FILE PHOTO: A general view of the Norwegian central bank, where Norway’s sovereign wealth fund is situated, in Oslo, Norway, March 6, 2018. REUTERS/Gwladys Fouche/File Photo
OSLO (Reuters) -Norway’s $1.4 trillion sovereign wealth fund, one of the world’s largest investors, on Friday posted a 5.9% return on investment for the first quarter boosted by rising equity markets.
“It’s actually one of the strongest quarters we ever had,” Deputy CEO Trond Grande said in a video posted on LinkedIn.
Despite market turmoil in March amid concerns of a new banking crisis, equity markets provided the biggest boost for the fund, with a nearly 8% gain, he said.
Meanwhile, falling interest rates benefited its bond portfolio, which returned almost 3%.
“The rise of the equity market was to a great extent driven by the technology and consumer discretionary sector,” Grande said in a statement.
The profit of 893 billion Norwegian crowns ($83.89 billion) contrasted with a loss of 653 billion a year earlier.
Norway has a population of just 5.5 million, meaning the result works out to more than $15,000 per person.
However, the return was 0.06 percentage point below its benchmark index, said the fund, which has posted positive annual relative returns since 2009.
The fund, which saves revenue from Norway’s large oil and gas industry, received 217 billion crowns in fresh government funds during the quarter.
Some 70% of the assets were held in stocks as of March 31, while 27.3% was invested in fixed income, 2.4% in unlisted real estate and 0.1% in unlisted renewable energy infrastructure.
Norway’s central bank manages the fund, which owns 1.5% of all globally listed shares and has stakes in 9,200 companies.
It posted a record loss of 1.64 trillion crowns last year.
($1 = 10.6444 Norwegian crowns)
Norway’s Government Pension Fund Global, one of the world’s largest sovereign wealth funds, has reported an impressive quarterly profit of $84 billion following a strong performance during the first quarter of 2021.
The fund, which is also referred to as the ‘Oil Fund’, in reference to Norway’s vast oil reserves, has established a reputation as a dependable investor over the years, boasting an impressive portfolio of investments throughout the world.
In its latest report, the fund confirmed a 5.3% return on investments as global equity markets continue to benefit from the economic recovery following the pandemic.
The quarterly performance is part of a prolonged period of strong results for the fund, which has grown from just under $500 billion a decade ago to $1068 billion today.
The fund, run by managers from Norway’s Central Bank, made investments in 8,700 companies globally during the quarter in an attempt to make the most of the positive outlook for the global economy.
The extra funds are expected to be used to help build up the pool of money the fund holds, as well as being put towards Norwegian public services programs.
Overall, Norway’s Government Pension Fund Global has posted an impressive quarterly profit, continuing its success as a reliable investor. Its performance over the past decade has seen its value almost double, indicating an ongoing commitment to successfully managed investments.