Norway's sovereign wealth fund hits a whopping US$1T

Yngve Slyngstad

Norway's sovereign wealth fund on Tuesday hits 1 trillion US dollars in value for the first time, the fund said in a statement.

Norway first deposited oil and gas profits into the fund in May 1996 and chief executive Yngve Slyngstad said nobody at the time had expected it to hit the trillion dollar mark, calling the growth "stunning".

The value of Norway's sovereign-wealth fund hit $1 trillion on Tuesday, according to Norges Bank Investment Management, the arm of the central bank that manages the fund.

A Reuters calculation, based on the fund's own live valuation on its website, had previously shown the fund hit the trillion-dollar mark on September 12.

The fund, which reached its record value early Tuesday, has been boosted lately by a rise in stock markets and a weaker USA dollar, which increases the dollar value of its holdings in other currencies. With the fund's value working out to over $190,000 for each of Norway's citizens, it now holds the title of the largest and most lucrative sovereign fund in the world.

In January 2016, the Norwegian government made the first ever withdrawal from the pot of cash to address a slowing economy.

It has few rivals in terms of size. There are also big cash-piles at money management firms such as BlackRock Inc.'s $5.7 trillion and Vanguard Group's $4.4 trillion.

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