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Norway’s sovereign wealth fund reports profit of USD76.4 billion in Q3
(MENAFN) Norway’s sovereign wealth fund, recognized as the largest in the world, reported an impressive profit of USD76.4 billion for the third quarter of 2024, as announced on Tuesday. This notable performance highlights the fund's resilience and growth, reflecting a total return of 4.4 percent for the quarter. This figure is just 0.1 percentage points shy of the benchmark index established by the Norwegian Finance Ministry, which relies on the FTSE Global All Cap and Bloomberg Barclays indices as its foundation.
Trond Grande, deputy CEO of Norges bank Investment Management— the entity responsible for overseeing the fund— attributed the strong results to gains across all investment sectors. He noted that falling interest rates played a crucial role in driving a significant rise in equity markets. Additionally, the depreciation of the Norwegian krone against major foreign currencies further enhanced the fund’s value during the quarter, allowing it to capitalize on international investments.
Established in 1990, the sovereign wealth fund has steadily expanded by investing the returns from Norway’s oil and gas production into foreign stocks, bonds, and real estate. While the Norwegian government is permitted to draw small portions of the fund's revenues, the majority is preserved to benefit future generations, emphasizing a long-term investment strategy.
As of the end of September, the fund had amassed shares in 8,763 companies across 71 countries, with approximately 1.5 percent of those companies' shares directly tied to the fund's investments. In recent years, it has also broadened its investment portfolio to include renewable energy projects, reflecting a commitment to sustainable investment practices. Overall, the fund's market value reached around USD1.7 trillion, solidifying its status as a significant player in the global investment landscape.
Trond Grande, deputy CEO of Norges bank Investment Management— the entity responsible for overseeing the fund— attributed the strong results to gains across all investment sectors. He noted that falling interest rates played a crucial role in driving a significant rise in equity markets. Additionally, the depreciation of the Norwegian krone against major foreign currencies further enhanced the fund’s value during the quarter, allowing it to capitalize on international investments.
Established in 1990, the sovereign wealth fund has steadily expanded by investing the returns from Norway’s oil and gas production into foreign stocks, bonds, and real estate. While the Norwegian government is permitted to draw small portions of the fund's revenues, the majority is preserved to benefit future generations, emphasizing a long-term investment strategy.
As of the end of September, the fund had amassed shares in 8,763 companies across 71 countries, with approximately 1.5 percent of those companies' shares directly tied to the fund's investments. In recent years, it has also broadened its investment portfolio to include renewable energy projects, reflecting a commitment to sustainable investment practices. Overall, the fund's market value reached around USD1.7 trillion, solidifying its status as a significant player in the global investment landscape.
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