OSLO (Reuters) – The value of Norway’s sovereign wealth fund, the world’s largest investment fund, reached a record 20 trillion Norwegian crowns (1.7 trillion euros) on Friday, doubling its value in the space of five years, notably thanks to the influx of oil and gas revenues and the rise in stock markets.
Formed in 1996 as an emergency savings, the fund has far exceeded initial forecasts, reaching almost four times the size of Norway’s annual gross domestic product (GDP).
Its current value corresponds to a sum of approximately 321,000 dollars (304,265.40 euros) available to each of Norway’s 5.6 million inhabitants.
Managed by Norges Bank Investment Management which invests 70% of the fund’s assets in global stocks, the fund owns on average 1.5% of all listed stocks worldwide.
Norges Bank Investment Management also invests around 25% in bonds and around 5% in real estate and renewable energy installations.
US government bonds, which represent $136 billion, or 7.5% of the fund as of June 30, make up the largest share of the portfolio.
The most valuable companies for the fund are Microsoft Corp ($41 billion), Apple Inc ($35 billion) and Nvidia ($34 billion).
The fund, which crossed the 10,000 billion crown mark in October 2019, was boosted in the following years by stimulus measures for the global economy during the Covid-19 pandemic and by soaring natural gas prices after Russia’s invasion of Ukraine.
The strength of the US dollar and the euro also increased the value of the fund measured in Norwegian krone.
The fund did not wish to comment.
(Reporting by Terje Solsvik and Gwladys Fouche, by Etienne Breban, edited by Augustin Turpin)
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