Market Overview

World's Biggest Wealth Fund Made $53 Billion During 'Trump Rally'

World's Biggest Wealth Fund Made $53 Billion During 'Trump Rally'

The "Trump rally" helped Norway's $900 billion Government Pension Fund Global pocket a $53 billion profit last year.

According to a Bloomberg report, Norway's sovereign wealth fund, the world's largest wealth fund, notched a 6.9 percent return thanks in part to the stock market's strong surge after President Donald Trump won the presidential election.

Stocks in the wealth fund's portfolio rose 8.7 percent, bonds gained 4.3 percent and investments in real estate gained 0.8 percent.

Granted, the fund's total 6.9 percent return under-performed most broader indices but it does represent a spike from the 2.7 percent return the fund earned in 2015 and exceeded the benchmark set by the country's Finance Ministry by 0.1 percentage point.

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$900 Billion Broken Down

The fund's exposure to the North American market ended 2016 at 42.3 percent, up from 40.0 percent while exposure to Europe fell to 36 percent from 38.1 percent and exposure to emerging markets was slightly higher at 10 percent versus 9.8 percent a year ago.

In total, the fund holds investments across 77 countries. By asset class, 62.5 percent of the total $900 billion is held in equities, 34.3 percent in fixed income and 3.2 percent in real estate.


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