The Norwegian pension fund made a record profit last year. The global boom in the technology sector in particular contributed to this.
The boom in technology stocks has brought record profits to Norway’s sovereign wealth fund. In 2024, the world’s largest sovereign wealth fund achieved a surplus of 2.22 trillion Norwegian crowns, which is equivalent to around 196 billion euros.
“Despite high inflation and geopolitical unrest, the stock market was very strong in 2023,” said top fund manager Nicolai Tangen, explaining the good development. The good performance of the global technology sector in particular contributed to this. For months now, the imagination surrounding the increasing use of artificial intelligence (AI) has been inspiring courses here.
Fund owns 1.5 percent of all listed Shares
The fund’s return was 16.1 percent last year. The state pension fund, founded in 1996, invests the income from the Norwegian oil and gas sector. Norway wants to use the investments to prepare for the time when the country’s fossil reserves run out. The fund has stakes in more than 8,800 companies worldwide, owning 1.5 percent of all listed stocks.
The fund also invests in bonds, unlisted real estate and renewable energy projects.
Record loss in 2022
The fact that the stock market is a two-way street is also reflected in the fund’s results. The investment vehicle can generally show positive results and also regularly beats the development of international stock market indices. Last year, however, the fund recorded a record loss of 1.6 trillion crowns in the wake of the Russian attack on Ukraine and the deterioration of the global economy.