Norway’s Sovereign Wealth Fund Posts Record Full-Year Profit
Norway’s sovereign wealth fund, the largest of its kind in the world, reported a full-year profit of 2.5 trillion kroner ($222.4 billion) for 2024, surpassing the previous year’s record profit. The Government Pension Global Fund, managed by Norges Bank Investment Management (NBIM), achieved a return on investment of 13% for the year, driven primarily by a strong stock market, particularly in technology stocks.
CEO Nicolai Tangen attributed the fund’s success to a very strong stock market, with American technology stocks performing exceptionally well. NBIM Deputy CEO Trond Grande noted that the fund’s returns were driven by certain sectors, particularly a boom in tech stocks, as well as higher interest rates in financials.
The fund is a shareholder in global companies including tech giants Apple, Microsoft, Nvidia, and Amazon, with 70% of its benchmark index comprised of equities. It also invests in fixed income, real estate, and renewable energy infrastructure.
In recent days, US tech stocks have been volatile due to the emergence of a new, open-source large language model from Chinese AI lab DeepSeek. The fund’s CEO acknowledged the development, stating that cheaper language models will lead to more widespread adoption of artificial intelligence, which is positive for the industry. However, he also admitted that he didn’t know if the recent sell-off was a blip or a long-term trend. The fund has maintained a small underweight in large technology companies but has not made any major changes in response to the recent market fluctuations.
