OSLO, April 21 (Reuters) – Norway’s $1.4 trillion sovereign wealth fund, one of many world’s largest buyers, on Friday posted a 5.9% return on funding for the primary quarter boosted by rising fairness markets.
“It is really one of many strongest quarters we ever had,” Deputy CEO Trond Grande mentioned in a video posted on LinkedIn.
Regardless of market turmoil in March amid considerations of a brand new banking disaster, fairness markets supplied the largest increase for the fund, with an almost 8% achieve, he mentioned.
In the meantime, falling rates of interest benefited its bond portfolio, which returned nearly 3%.
“The rise of the fairness market was to an ideal extent pushed by the know-how and client discretionary sector,” Grande mentioned in an announcement.
The revenue of 893 billion Norwegian crowns ($83.89 billion) contrasted with a lack of 653 billion a 12 months earlier.
Norway has a inhabitants of simply 5.5 million, which means the outcome works out to greater than $15,000 per particular person.
Nevertheless, the return was 0.06 share level under its benchmark index, mentioned the fund, which has posted optimistic annual relative returns since 2009.
The fund, which saves income from Norway’s massive oil and fuel trade, acquired 217 billion crowns in recent authorities funds throughout the quarter.
Some 70% of the belongings had been held in shares as of March 31, whereas 27.3% was invested in fastened revenue, 2.4% in unlisted actual property and 0.1% in unlisted renewable vitality infrastructure.
Norway’s central financial institution manages the fund, which owns 1.5% of all globally listed shares and has stakes in 9,200 corporations.
It posted a file lack of 1.64 trillion crowns final 12 months.
($1 = 10.6444 Norwegian crowns)
Reporting by Terje Solsvik
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