Norway Sovereign Wealth Fund Posts 5.8% Q3 Return Worth $103 Billion

Norway's sovereign wealth fund, the largest globally with assets totaling approximately $2 trillion, reported a 5.8% return for the third quarter, resulting in a profit of about $102.56 billion. This performance was mainly driven by strong equity returns in sectors such as basic materials, telecommunications, and financial services, with U.S. stocks comprising nearly 40% of its equity investments, including stakes in major tech and consumer companies. The fund's diversified portfolio consists of 71.2% global equities, 26.6% fixed income, and smaller allocations to unlisted real estate and renewable energy infrastructure. Despite this strong result, the fund's return was slightly below its benchmark by 0.06 percentage points. The fund's management highlighted the volatile stock markets during the quarter, including fluctuations in U.S. indices and a surge in Big Tech stocks fueled by AI sector optimism. The fund's resilience amid economic challenges underscores its robust investment strategy and diversified asset allocation.