Norway’s wealth fund buoyed by equities to post second-best year
Strong stock market performance drives 20 per cent return on $1.1tn oil fund
The world’s largest sovereign wealth fund enjoyed its second-best annual performance last year as buoyant equity markets boosted Norway’s $1.1tn oil fund’s return to 20 per cent.
Equities returned 26 per cent, bonds 8 per cent and unlisted property 7 per cent as the fund recorded its largest ever gain in krone terms, rising NKr1.7tn ($180bn) in 2019.
“2019 has been a great year in the fund’s history, driven by positive equity returns in all of the fund’s principal markets and in all equity sectors,” said Yngve Slyngstad, the fund’s chief executive, who announced his resignation late last year days after the fund reached NKr10tn.
Favourite to replace him is his deputy, Trond Grande, who was the lead candidate on the list of applicants released by Norway’s central bank this week. The change in chief executive after 12 years of Mr Slyngstad occurs at a crucial time for the fund with growing worries about political interference and concerns about how the Norwegian public and politicians would tolerate a big fall in the fund’s value.
The equities that contributed most towards the fund’s return in 2019 were Apple, Microsoft, and Nestlé while the worst performers were Nokia, Pfizer and Swedbank.