Norway's huge sovereign wealth fund, the world's largest, reported last year the second best performance of its history, the country's central bank said Friday, virtually making every Norwegian a millionaire.
The so-called oil fund is fed by the state's oil revenues and invested outside the country to prevent an overheating of the national economy.
Started in the 1990s, it had a 15.9 percent financial return, or 692 billion kroner (83.5 billion euros, $115 billion) in 2013 helped by a 26.3-percent rise in profits from share investments, which represent 61.7 percent of its portfolio.
Its value at the end of 2013 amounted to 5,04 billion kroner, almost making all of Norway's 5.1 million residents millionaires in the local currency, at least on paper.
Despite the fund's misleading official name -- the Government Pension Fund of Norway -- the state is actually saving it to guarantee the continuation of its generous welfare benefits in the future.
Odd Andersen, AFP/File
People pass Picasso's mural art work "The Fisherman" (left) on the government quarter's 'Y building' in Oslo, Norway on August 6, 2013
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Yngve Slyngstad, the oil fund's chief executive, said 2013 was "a good year" in terms of financial performance.
Bond investments (37.3 percent of the portfolio) gave no return, while real estate investments in Europe and the US, turned in 11.8 percent.
According to the Sovereign Wealth Fund Institute, the Norwegian fund is the largest in the world, followed by a fund owned by the United Arab Emirates.
hollywoodtone.blogspot.com Second best year for Norway's sovereign wealth fund