Norway's sovereign wealth fund, the largest globally, posted significant gains in the third quarter of 2024, adding almost €71 billion to its value. The fund, which now holds assets worth €1.597 trillion (18.87 trillion Norwegian crowns), reported a quarterly return of 4.4%, thanks to favorable stock market conditions fueled by a global drop in interest rates.
"We achieved positive returns in all our investment areas," stated Trond Grande, the fund's deputy CEO, attributing the results to the decline in interest rates, which sparked a general rise in global stock markets.
Equity Investments Drive Growth
Equity investments, which make up 71.4% of the fund’s portfolio, saw a return of 4.5% during the quarter. Bond investments, accounting for 26.8% of the portfolio, delivered a 4.2% return, while real estate assets (1.7% of the portfolio) posted a modest gain of 0.8%. Investments in unlisted renewable energy projects, though still a small part of the portfolio, surged by 10.8% over the period.
The fund’s performance continues a strong trend for 2024. In the first half of the year, it delivered an 8.6% return, with technology stocks leading the charge due to the rising demand for artificial intelligence solutions. In the first six months alone, the fund generated €168 billion in returns, equivalent to Morocco’s GDP for 2023.
Future-Oriented Investment Strategy
Founded in the 1990s and primarily funded by state oil revenues, Norway's sovereign wealth fund is designed to support the country’s future welfare spending. Despite fluctuations in some investment areas, such as renewable energy infrastructure and real estate, the fund’s heavy focus on equity investments, including stakes in tech giants like Apple, Microsoft, and Samsung, continues to deliver robust returns.
In addition to its market investments, the fund continues to benefit from revenues generated by Norway’s oil and gas sector, which contributed €16 billion in the first half of 2024 alone.
As the largest individual investor in global stock markets, the Norwegian fund holds an average of 1.5% of shares in nearly 9,000 companies across 71 countries, reinforcing its dominant position in the world’s financial landscape
