Norway's sovereign wealth fund, officially named the Government Pension Fund Global (GPFG), exceeded a symbolic threshold on Friday December 6, reaching a value of 20,000 billion Norwegian crowns, or approximately 1,700 billion euros. This amount represents a significant increase in the management of the Norwegian state's oil revenues.
Created in 1990 to prepare the Norwegian economy for the post-oil era, the fund received its first payment in 1996, a relatively modest sum of 1.981 billion crowns. Since then, its value has grown spectacularly, crossing the 10,000 billion mark in 2019, before doubling in just five years.
Growth supported by diversified investments
GPFG is primarily invested in equities, which represent just over 70% of its total assets. With stakes in around 8,800 companies around the world, the fund alone owns 1.5% of all listed stocks globally. This status gives it a unique position as the largest individual investor on the planet.
In addition to stocks, the fund has a significant portfolio of bonds, which make up around 27% of its assets, and various investments in real estate as well as unlisted renewable energy projects.
A direct impact on the Norwegian population
The current value of the fund corresponds to 3.6 million crowns for each inhabitant of the country, including children. These assets are intended to support the generous Norwegian welfare state in the future, when hydrocarbon revenues decline with the depletion of oil resources.
The GPFG is often cited as an example of responsible management of natural resources, seeking to balance economic return and long-term sustainability. This model inspires other nations rich in natural resources.
An evolving sustainable investment model
Over the years, the fund has also integrated ethical and environmental criteria into its investment strategy. For example, it avoids companies involved in coal production or activities considered harmful to the environment.
As the global energy transition accelerates, the fund continues to diversify its assets to include more projects aligned with international climate goals.
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