Norway’s $1.6 trillion sovereign wealth fund, known as the Government Pension Fund Global, announced that it achieved a record profit of 2.22 trillion Norwegian crowns ($213 billion) in 2023. This marked a significant turnaround from its record loss of 1.64 trillion crowns in 2022, as reported by Norges Bank Investment Management (NBIM) on Tuesday. The remarkable profit was largely attributed to the fund’s successful investments in technology stocks.

NBIM Chief Executive Nicolai Tangen highlighted that despite challenges such as high inflation and geopolitical turmoil, the equity market in 2023 performed exceptionally well, especially in the technology sector. The fund’s most valuable company stake was in Microsoft, with shares worth 358.4 billion crowns, followed closely by Apple with 337.3 billion crowns.

With a return on investment of 16.1% for the year, the fund slightly underperformed its benchmark index by 0.18 percentage points. The fund, which invests the Norwegian state’s revenues from oil and gas production, holds stakes in more than 8,800 companies globally and owns 1.5% of all listed stocks. At the end of 2023, 70.9% of the fund’s assets were allocated to equities, while bonds accounted for 27.1%, unlisted real estate for 1.9%, and renewable infrastructure for 0.1%.

Despite recording a profit, the fund received 711 billion crowns in inflows from the Norwegian state in 2023, falling short of the 2022 record of nearly 1.1 trillion crowns. Norway, a major crude oil exporter and Europe’s largest gas supplier, has benefited from higher energy prices due to the war in Ukraine and a drop in Russian gas flows in 2022.

The news of Norway’s sovereign wealth fund’s record profit highlights the success of its investment strategy, particularly in the technology sector, and underscores Norway’s position as a major player in global finance.