Norwegian sovereign wealth fund reports annual profit of USD222B
Date
1/30/2025 6:56:11 AM
(MENAFN) Norway's sovereign wealth fund, the largest of its kind globally, reported a record annual profit of 2.5 trillion kroner (USD222 billion) for 2024, marking its highest-ever gain in kroner terms. The Government Pension Fund Global (GPFG), managed by Norges bank Investment Management (NBIM), achieved a 13 percent return on investment for the year. This strong performance was largely driven by a robust stock market, with American technology stocks performing particularly well.
Equity investments led the fund's performance, returning 18 percent, while fixed-income investments showed a more modest gain of 1 percent. However, the fund's investments in unlisted real estate and renewable energy infrastructure lagged behind, with returns of minus 1 percent and minus 10 percent, respectively. Despite the overall success, the fund's return fell 0.45 percentage points short of its benchmark index.
By the end of 2024, the Oslo-based fund, which was established in 1996, had grown to a total value of 19.7 trillion kroner (USD1.75 trillion). A significant contributing factor to the fund's increase in value was the depreciation of the Norwegian krone against major currencies, which added an additional 1.1 trillion kroner (USD97.8 billion) to its overall worth.
The performance of the GPFG underscores the fund's strength and its ability to generate substantial returns, particularly in favorable market conditions.
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