Norway’s sovereign wealth fund has recorded a full-year profit of 2.5 trillion kroner (US$222.4 billion).
It is the largest wealth fund of its kind in the world and experienced its greatest absolute increase on record, surpassing the previous record set in 2023 of 2.22 trillion kroner.
Norges Bank Investment Management (NBIM) revealed in an earnings report that The Government Pension Global Fund was valued at 19.7 trillion kroner by the end of 2024.
In 2024, the Fund also returned 13%, equivalent to 2,511 billion kroner.
“The fund achieved very good returns in 2024, as a result of a very strong stock market. The American technology stocks in particular performed very well”, says CEO Nicolai Tangen of Norges Bank Investment Management.
NBIM Deputy CEO Trond Grande described a “very, very strong year for equities” as the biggest driver of the fund’s return in 2024 during a press conference following the earnings announcement.
According to NBIM, 71.4% of the fund was invested in equities, 26.6% in fixed income, 1.8% in unlisted real estate, and 0.1% in unlisted renewable energy infrastructure.
The fund received the most returns from equity investments at 18% while the return on the fixed-income investments was just 1%.
Whereas other investments experienced a decline with unlisted real estate returning -1% and unlisted renewable energy infrastructure -10%.
Grande also said the impressive returns had been driven by a boom in the tech sector.
“Tech [has been] really strong, driven by AI, and also financials due to interest rates being higher for longer,” he said.
The fund has shares in major global tech companies including Apple, Microsoft, Nvidia, Amazon, Samsung and Tesla.
Additionally, the total investments in equities are spread across diverse industries as well as across 63 countries and 8.5 thousand companies with a total value of 14 trillion kroner.
Currency movement also contributed to the increase in the fund's value as the kroner depreciated against several major global currencies and increased the value by 1,072 billion kroner.
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