In the third quarter, the Norwegian Government Fund accumulates an additional 71 billion euros.
The colossal Norwegian state investment fund, being the globe's largest pension plan, saw a profit of roughly 71 billion euros during the third quarter. The fund yielded a return of 4.4% between July and September, expanding its worth to 18.9 trillion Norwegian kroner (equating to 1.6 trillion euros). The primary factor behind this growth is the optimistic mood on worldwide stock exchanges due to central bank interest rate reductions.
As Trond Grande, the deputy fund CEO, explained, "We saw positive gains across all our investment sectors." "The decrease in interest rates has induced a widespread rise in the stock market."
Equities, accounting for 71.4% of the fund's holdings, returned 4.5%. Bond investments, constituting 26.8% of assets, grew by 4.2% during the same period, while real estate investments, comprising 1.7% of the portfolio, increased by 0.8%. The meager stake in unlisted renewable energy ventures appreciated by 10.8% in value.
Funded by revenues from Norway's oil and gas corporations, this pension fund is designated to finance future expenditures in Norway's social welfare system. Its investments can only be made abroad, and it is currently associated with around 9,000 enterprises in 71 nations. The fund controls approximately 1.5% of the overall worth of all publicly listed companies worldwide.
After experiencing the optimistic mood on global stock exchanges, equities within the fund saw a return of 4.5%.After the central bank interest rate reductions, the decrease in interest rates has induced a widespread rise in the stock market.
