Economy News – Follow-up
The Norwegian Sovereign Fund, recognized as the largest sovereign wealth fund globally, reported a remarkable profit of 2,511 billion krone (approximately 222 billion dollars) for the previous year. This figure marks the highest total value achieved, significantly bolstered by investments in technology assets.
The fund’s revenues experienced a 13 percent increase, resulting in a total value of 19,742 billion krone (1.75 trillion dollars) by the close of 2024.
This growth is predominantly attributed to its equity investments, which constituted 71.4 percent of its securities portfolio and accounted for more than 18 percent of last year’s revenue.
“The fund has achieved substantial revenues in 2024, thanks to a highly active securities market,” stated Nikolai Tangin, the Fund’s director.
Tangin emphasized that “American technology companies, in particular, have demonstrated exceptional performance.”
The fund maintains stakes in approximately 9,000 companies worldwide; however, its investments in the so-called “Seven Eagles” represent only 17 percent of its stock holdings. These seven companies—Apple, Amazon, Alphabet (Google), Meta (formerly Facebook, Instagram), Microsoft, and Tesla—delivered outstanding results on the stock exchange last year.
Nevertheless, a significant portion of shares from these companies experienced declines, primarily due to the rise of the Chinese company “Deep Seick,” which introduced an artificial intelligence assistant at a lower cost. Yet, American tech giants managed to recover their market positions by the following Tuesday.
Conversely, the Norwegian Sovereign Fund’s real estate investments, comprising 1.8 percent of its assets, recorded losses of 1 percent, while investments in renewable energy projects, which remain underrepresented, declined by 10 percent in value.
To receive more updates, subscribe to our channel on Tilekram