① Benefiting from a strong stock market performance, the Norwegian Government Pension Fund Global achieved a return of 5.8% in Q3; ② US stocks account for approximately 40% of its stock portfolio, with major holdings including Meta, Alphabet (Google's parent company), and Amazon. Nvidia and Microsoft Tech giants, etc.
On Wednesday (October 29) local time, the world's largest sovereign wealth fund, the Norwegian Government Pension Fund Global, released its investment report for the third quarter of this year. Thanks to the strong stock market performance, the sovereign wealth fund achieved a return of 5.8% in Q3.
The Norwegian Government Pension Fund Global was established in the 1990s, and its funds come from Norwegian oil and gas. The surplus income from the industry is therefore also known as the oil fund, and its current investments cover 70 countries around the world.
As of the end of September, the Norwegian government's global pension fund totaled 20.4 trillion Norwegian kroner (approximately US$2 trillion), an increase of 854 billion kroner from the previous quarter. The fund's book profit was 1.03 trillion kroner (approximately US$102.56 billion).
In terms of asset allocation, equities account for the vast majority of the sovereign wealth fund, reaching 71.2%; the remaining major asset classes are fixed income, unlisted real estate, and renewable energy infrastructure, accounting for 26.6%, 1.8%, and 0.4%, respectively.
The Norwegian Government Pension Fund's Q3 equity investment return was 7.7%, fixed income investment return was 1.4%, renewable energy infrastructure contributed 0.3%, and real estate return was 1.1%.
U.S. stocks comprise approximately 40% of its stock portfolio, with major holdings including tech giants such as Meta, Alphabet (Google's parent company), Amazon , Nvidia , and Microsoft . It is also a subsidiary of JPMorgan Chase . Walmart Lilly Pharmaceuticals and Coca-Cola Major shareholders of companies such as [Company Name].
During the reporting period, the stock market experienced significant volatility, with US stocks seeing both sell-offs and record highs due to factors such as tariffs. Despite this, large-cap technology stocks generally performed strongly, with investors continuing to bet on artificial intelligence. (AI) craze.
However, recently after the end of the reporting period, as market concerns about the risk of an AI bubble intensified, the stock prices of tech giants have fluctuated significantly.
The report states that the Norwegian krone suffered a loss of 259 billion kroner due to exchange rate fluctuations caused by its appreciation against several major currencies. In the three months ending September 30, the Norwegian krone appreciated by 0.7% against the US dollar; since the beginning of the year, it has appreciated by approximately 12% against the dollar.
(Article source: CLS)
