The Norwegian sovereign wealth fund, the largest in the world with a size of $1.3 trillion, announced on Wednesday that it recorded a profit in the first quarter of the year thanks to strong stock markets. The fund achieved a 4% return on investment and earned 382 billion Norwegian krone ($45.7 billion) between January and March, surpassing its benchmark index.
The fund benefited from a strategic shift last year, having realized returns of $123 billion from investments in U.S. stocks after shifting its holdings from European equities to U.S. technology stocks.
On April 10, 2021, the Norwegian Ministry of Finance stated that the $1.3 trillion sovereign wealth fund, considered the largest in the world, should reduce the size of its global benchmark index by 25 to 30% to improve oversight of companies, mainly by removing small stocks.
This move aligns with an increasing awareness among global investors regarding environmental, social, and governance risks, an area where the Norwegian sovereign fund has previously taken the lead. In its annual recommendation to Parliament, the Ministry suggested that the fund's benchmark index should be reduced to around 6,600 companies from the current 8,800.
