Norway’s Sovereign Wealth Fund Posts $222 Billion Profit, Driven by Tech Rally
Norway’s sovereign wealth fund reported a record $222.4 billion profit for 2024, driven by a surge in tech stocks, particularly in AI, and strong performance in financials due to sustained high interest rates. The fund's return on investment was 13%, just shy of its benchmark.
Norway’s sovereign wealth fund, the largest of its kind globally, reported a stunning annual profit of 2.5 trillion kroner ($222.4 billion) for 2024, largely driven by a significant rally in tech stocks. Managed by Norges Bank Investment Management (NBIM), the fund achieved a return on investment of 13% for the year, slightly underperforming its benchmark index by 45 basis points.
At a press conference, NBIM Deputy CEO Trond Grande credited the fund’s impressive returns to a particularly strong year for equities, noting that the tech sector—especially artificial intelligence—was a major contributor. The AI-driven boom in tech stocks helped propel the fund’s growth, with key tech companies experiencing substantial gains throughout the year.
In addition to tech, the financial sector also played a pivotal role in the fund’s success. The prolonged period of higher interest rates contributed to strong returns in financial stocks, further boosting the overall performance of the fund. Grande mentioned that these sectors were the primary drivers of the fund’s 2024 performance, marking a standout year in terms of equity returns.
With a 13% return, Norway’s sovereign wealth fund has further solidified its position as a global financial powerhouse. The remarkable profit highlights the ongoing importance of technological advancements, particularly in AI, as well as the stability offered by the financial sector in today’s economic climate. This success reflects the fund’s ability to adapt to global market trends and continue generating substantial returns for Norway’s future.
