Tags: norway | sovereign wealth fund | 1 trillion

Norway Sovereign Wealth Fund $1T for a Rainy Day

Norway Sovereign Wealth Fund $1T for a Rainy Day
The national flag of Norway. (Photonics/Dreamstime)

By    |   Tuesday, 19 September 2017 02:38 PM

Norway’s sovereign wealth fund reached a value of $1 trillion for the first time early Tuesday, boosted by strong stock markets and a weak U.S. dollar.

The milestone was reached at 2:01 a.m. in Oslo, Bloomberg reported, citing a statement from Norges Bank Investment Management, which manages the fund.

"I don't think anyone expected the fund to ever reach 1 trillion dollars when the first transfer of oil revenue was made in May 1996," Norges Bank CEO Yngve Slyngstad said in the statement. "Reaching 1 trillion dollars is a milestone, and the growth in the fund's market value has been stunning."

The bank attributed the fund’s growth to the rise of the world’s major currencies against the U.S. dollar combined with strong equity markets during 2017.

According to CNN Money, the fund is among the world's biggest investors in stocks, owning $667 billion worth of shares in over 9,000 companies globally. It owns on average 1.3 percent of all listed companies worldwide.

Its largest holdings are in Apple (AAPL, Tech30), Nestle (NSRGF), Royal Dutch Shell (RDSA), Novartis (NVS), Microsoft (MSFT, Tech30) and Alphabet (GOOGL, Tech30), the owner of Google, CNN Money reported.

The fund was set up over 20 years ago to invest revenue made from oil extraction. Since January 1998, the fund generated an annual return of 5.9 percent, before clocking a 6.9 percent return in 2016, according to CNN Money.

The first time any money was ever withdrawn from the fund was in January 2016, when the Norwegian government sought to address a slowing economy. With the fund’s value working out to over $190,000 for each of Norway’s citizens, it now holds the title of the largest and most lucrative sovereign fund in the world.

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Norway's sovereign wealth fund reached a value of $1 trillion for the first time early Tuesday, boosted by strong stock markets and a weak U.S. dollar.
norway, sovereign wealth fund, 1 trillion
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2017-38-19
Tuesday, 19 September 2017 02:38 PM
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