Norway’s sovereign wealth fund, the world’s largest, earned 893 billion crowns (76.5 billion euros) in the first quarter, driven by an improvement in the stock market, the Norwegian central bank in charge of its management announced on Friday. .
This performance, which represents a return of 5.9%, allows the fund, one of the largest investors on the planet, to erase nearly half of the colossal loss (151,000 million euros) suffered last year.
At the end of March, its value reached the dizzying sum of 14,294 million crowns (1,223 million euros), or almost 2.6 million euros for each of the 5.5 million Norwegians.
“Equity investments were the biggest contributors to performance during the quarter,” the fund’s number two Trond Grande said in a statement.
“The rise in the stock market was largely driven by the technology sector and non-essential goods,” such as luxury, he added.
Positive return of 7.4% on equity investments
Equity investments, which made up 70.1% of the portfolio, posted a positive return of 7.4% in the first quarter. The fund holds shares in more than 9,200 companies worldwide, representing the equivalent of 1.5% of total market capitalization.
Its investments in bonds (27.3% of its assets) gained 2.7% in the same period, while its investments in real estate and unlisted renewable energy, representing 2.4% and 0, respectively. 1%, came out in the red, with -1.0%. and -3.8%.
Supposed to grow the Norwegian state’s oil and gas revenues, the fund is intended to finance future expenses of the generous welfare state that exists in the Nordic country.
Source: BFM TV
