The world's largest sovereign investment fund – the Norwegian oil fund with a volume of $ 1 trillion – doubled the return on investment in 2017 and earned $ 131 billion. The rally of world stocks increased the value of the fund's portfolio.
The fund recorded a return of 13.7% in 2017, compared with 6.9% a year earlier.
“The total income of the fund since its inception exceeded NOK 4,000 billion ($ 511 billion). A quarter of this amount was earned in 2017, after a very strong year for the fund,” said Fund Head Ingve Slingstad.
The return on investment of the fund in shares was 19.4%, in bonds – 3.3%, in real estate – 7.5%.
By the end of 2017, 66.6% of the fund was invested in shares. The share of investments in securities with fixed income amounted to 30.8%. Another 2.6% of the fund was invested in real estate, Bloomberg notes.
The Norwegian Oil Fund is one of the world's largest shareholders. He has invested in approximately 9,100 companies worldwide. The fund controls an average of 1.4% of shares traded on exchanges around the world.
The fund's largest equity investments in 2017 were investments in Apple Inc., Nestle SA and Royal Dutch Shell Plc.
The largest investments in fixed-income securities are in government bonds of the USA, Japan and Germany.
Last year, Norway's oil fund reached $ 1 trillion.
In 2017, the Norwegian government withdrew from the fund 61 billion kroons to finance public spending, compared with 101 billion kroons a year earlier. In 2016, the authorities were forced to make the first withdrawal of funds due to falling oil prices.