OSLO, Jan 30 — Norway’s US$1.6 trillion (RM7.5 trillion) sovereign wealth fund, the world’s largest, posted a record profit of 2.22 trillion Norwegian crowns (RM1 trillion) in 2023, driven by strong returns on its investments in technology stocks.
The result swung from a record loss in 2022 of 1.64 trillion crowns, Norges Bank Investment Management (NBIM) said today.
“Despite high inflation and geopolitical turmoil, the equity market in 2023 was very strong, compared to a weak year in 2022. Technology stocks in particular performed very well,” NBIM Chief Executive Nicolai Tangen said in a statement.
The fund’s return on investment in 2023 stood at 16.1 per cent for the year, 0.18 percentage point lower than the return on the fund’s benchmark index.
The fund invests the Norwegian state’s revenues from oil and gas production in equities, bonds, property and renewable projects abroad.
It is the world’s largest sovereign wealth fund, holding stakes in more than 8,800 companies globally and owning 1.5 per cent of all listed stocks.
At the end of the year, 70.9 per cent of the fund’s assets were allocated to equities, up from 69.8 per cent in 2022, bonds declined to 27.1 per cent from 27.5 per cent, unlisted real estate fell to 1.9 per cent from 2.7 per cent and renewable infrastructure held steady at 0.1 per cent of investments. — Reuters
