Business & Investment

Norwegian sovereign wealth fund backed by tech stocks will earn $ 123 billion in 2020 By Reuters

© Reuters.File Photo: Overview of the Norges Bank, where the Norwegian sovereign wealth fund is located in Oslo


By Gwladys Fouche and Terje Solsvik

Oslo (Reuters)-The world’s largest Norwegian $ 1.3 trillion sovereign wealth fund earned a return on investment of 1.7 trillion Norwegian crowns ($ 122.7 billion) in 2020. This is the second highest in 25 years of history, said Thursday.

“This year was even better for the fund, despite the pandemic leaving its mark in 2020,” Central Bank Governor Oystein Olsen said in a statement. The fund is managed by a central bank unit.

“But high returns also remind us that the market value of the fund can fluctuate significantly in the future,” he said.

Last year’s return on investment was 10.9%, 0.27 points higher than the fund’s benchmark index.

The fund’s performance is backed by US high-tech stocks, with Apple (NASDAQ :), Amazon (NASDAQ :), Microsoft (NASDAQ :), and Tesla (NASDAQ :) contributing the most to absolute returns, presentation material is showing.

“Technology companies had the highest returns in 2020, at 41.9%,” Nikolai Tangen, CEO of the fund, said in a statement.

“This is primarily a pandemic, with a significant increase in demand for products for online work, education, trade and entertainment.”

On a country basis, the United States is the largest contributor to fund returns, with over 500 billion crowns, followed by China with over 100 billion crowns, according to presentation material.

Investment in the UK has lost a fund of 70 billion crowns.

Founded in 1996, the Norwegian Fund holds approximately 9,200 shares worldwide and owns 1.5% of all listed shares. We also invest in fixed income and unlisted real estate.

The fund holds $ 240,000 worth of Norwegian men, women and children.

As of the end of the year, 72.8% of the fund’s investment was in equities, 24.7% in fixed income and 2.5% in unlisted real estate.

($ 1 = 8.7208 Norwegian krone)

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Norwegian sovereign wealth fund backed by tech stocks will earn $ 123 billion in 2020 By Reuters Norwegian sovereign wealth fund backed by tech stocks will earn $ 123 billion in 2020 By Reuters

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