Norway's Sovereign Wealth Fund Stays Steady Amid Market Fluctuations

Norway's $1.6 trillion sovereign wealth fund aims to keep 70% of its assets in equities, despite recent market declines. Managing oil and gas revenues, the fund holds about 1.5% of all listed stocks globally. Equity allocation rose slightly in 2024, while bonds and real estate holdings declined.

Norway's colossal $1.6 trillion sovereign wealth fund will sustain its investment strategy, maintaining 70% of its assets in equities, despite the recent global stock market downturn. This announcement was confirmed by Finance Minister Jens Stoltenberg.

Addressing reporters, Stoltenberg emphasized the fund's commitment to its political investment guidelines. He stated that should the equities fall below the 70% mark, actions would be taken to restore and maintain the desired level. The fund, among the world's largest investors, effectively manages the country's oil and gas revenue, accounting for an average of 1.5% stake in all listed stocks globally.

While the fund recently experienced record gains due to robust stock markets, the equities market has been subject to recent fluctuations. At the conclusion of 2024, the fund had 71.4% of its assets in stocks, up from 70.9% in 2023, while its bond holdings decreased to 26.6%. Unlisted real estate holdings and renewable infrastructure investments also saw minor declines.

(With inputs from agencies.)