Norway: sovereign wealth funds explode stock market counters, Apple, Google and Microsoft bring big gains

THE sovereign wealth fund of Norwaythe largest in the world, it had a record profit last year 2,222 million crowns (197,000 million euros), boosted by technology stocks and the weakness of the Norwegian currency, announced on Tuesday, January 30. Expressed in national currency, this is the highest annual return ever published by the fund, as its value reached 15,765 million crowns at the end of 2023 (1,395,500 million euros). “even though inflation great and geopolitical unrest, has the stock market it was very strong in 2023 compared to the weak year of 2022.stated the head of the fund, Nicolai Tangen, in a press release.

“Technology stocks in particular performed very well”, he stated. Powered by oil revenues In the state of Norway, a whopping 70.9% of the nest egg is invested in shares, the asset class 21.3% yield in the first year Among the 8,859 companies with shares in the world, technology stocks, driven by the artificial intelligence craze, are gaining ground, representing 22.3% of investments in the stock market last year, compared to 14.5% in 2019.

High interest rates

Reflecting this trend, the podium of his three largest individual investments is completed Microsoft, Apple And the alphabetparent company google. Bond investments, which represent 27.1% of its assets, returned 6.1% in 2023, while real estate (1.9% of the portfolio) lost 12.4%, particularly weighed down by high interest rates.

In addition to the financial performance, the value of the Norwegian fund increased 409 billion crowns, due to the Norwegian krone’s weakness against several major currencies. The fund started investing in renewable energy projects not yet listed on the stock market, a very marginal segment, where it earned 3.7%. According to the Sovereign Wealth Fund Institute, Norway’s sovereign wealth fund is the largest in the world, ahead of the two Chinese funds.

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