Norway's Sovereign State Fund Reached USD 1 Trillion
Norwegian sovereign state wealth fund, which is the world's largest, has reached the sum of USD 1 trillion.
The news was reported by the Norwegian Central Bank, which controls the capital.
This means that every citizen of the Norwegian population of 5.3 million people is worth almost USD 189,000. "I do not think anyone expected the fund to reach USD 1 trillion when the first transfer of oil revenues was made in May 1996, "Ingwe Slingstad, executive director of Norges Bank's investment department, said in a statement.
Norwegian Savings Fund aims to invest in the state's social system when one day the country's oil is exhausted. The government, which puts all the "black gold" revenue in the fund, can draw on it only the equivalent of the expected return on money, but not the hard capital.
Last year, the government first began to withdraw more money from the fund than investing in it. This was due to the sharp fall in the price of oil.
Norway is the largest oil producer in Western Europe.
The Norwegian State Pension Fund, as its official name, was founded in 1990 and invests primarily in shares (representing 65.1% of its portfolio at the end of the second quarter), but also in real estate and bonds.
With shares in nearly 9,000 companies, the fund owns 1.3% of global market capitalization and 2.3% of Europe's market capitalization.
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