Norway's sovereign wealth fund shows strong performance in the third quarter

Norway's massive 2 trillion dollar sovereign wealth fund generated a return of 5.8 percent in the third quarter. This success was driven by stock market gains in the mining, telecommunications, and financial services sectors. The fund is managed by Norges Bank Investment Management (NBIM) on behalf of the Norwegian people and was established in the 1990s to invest oil and gas revenues. Today, it holds investments in 70 different countries.

At the end of September, the total value of the Government Pension Fund Global reached 20.4 trillion Norwegian kroner, representing an increase of 854 billion kroner over the three-month period. The fund's accounting profit was recorded at 1.03 trillion kroner, which corresponds to a profit of 102.56 billion dollars.

NBIM announced that the fund's return was 0.06 percentage points below its benchmark index. The quarterly return on equity investments was 7.7 percent. Trond Grande, Deputy CEO of Norges Bank Investment Management, stated, "This result is primarily due to strong returns in the stock market, particularly in the basic materials, telecommunications, and financial sectors."

Approximately 40 percent of the fund's equity investments consist of US stocks.

News Source: 12punto