U.S. Tech Companies and Novo Nordisk Lead the Way
Norway’s Government Pension Fund Global, the largest sovereign wealth fund in the world, announced on Tuesday that it had recorded its highest-ever annual return. The fund’s success was primarily driven by the performance of U.S. technology giants and Danish pharmaceutical company Novo Nordisk, specifically their diabetes-turned-weight loss drug Ozempic.
Impressive Growth Amidst Global Challenges
Despite facing challenges such as high inflation and geopolitical turmoil, Oil Fund manager Nicolai Tangen reported an astounding 16% increase in the fund’s value over the past year. This surge translated to a staggering 15,765 billion kroner (approximately $1,500 billion) or $273,000 for each of Norway’s 5.5 million citizens.
Unrivaled Contributions
The remarkable growth of the fund was largely attributed to the exceptional performance of several prominent U.S. technology companies. Microsoft, Apple, NVIDIA, Meta, Amazon, and Alphabet emerged as the top contributors to this historic achievement. Notably, electric car manufacturer Tesla also secured a spot among the fund’s leading contributors.
Danish pharmaceutical company Novo Nordisk stood as the next significant contributor to the Oil Fund’s success. Their drug Ozempic, originally designed to treat diabetes, experienced a surge in demand as it gained popularity as an effective obesity treatment. Novo Nordisk’s higher dose version of the drug, marketed as Wegovy, further bolstered their contribution.
The Backbone of Norway’s Prosperity
The Government Pension Fund Global, commonly known as the Oil Fund, is responsible for investing Norway’s oil and gas profits. With a diverse portfolio, including shares, government bonds, real estate, and renewable energy infrastructure, the fund holds a remarkable 1.5% stake in all globally listed companies.
Setting New Records and Driving Economic Growth
This record-breaking performance not only solidifies Norway’s position as an economic powerhouse but also reaffirms the Oil Fund’s crucial role in the nation’s prosperity. By securing substantial returns and investing wisely, the fund continues to make a significant impact on Norway’s financial landscape.