Recently, the annual Nobel Prize award has caused heated discussions. According to previous reports by Xinhua Agency, starting from 2023, the individual Nobel Prize prize will be increased from the original 10 million Swedish kronor (about 7.5 million yuan) to 11 million Swedish kronor (about 8.25 million yuan). In addition, the winners will also receive exquisite and strong medals (worth millions of dollars at auction). Based on this calculation, the annual prize expenditure of the Nobel Foundation reaches 66 million Swedish kronor. If administrative expenses are included, the annual fixed expenditure is a large amount.
Since the first Nobel Prize was awarded in 1901, the Nobel Foundation's wealth management road has gone through 125 years of ups and downs. From the initial 31 million Swedish kronor to 6.797 billion Swedish kronor in 2025, the value of the fund has increased by about 220 times, and the rough annualized rate of return is as high as 8.3%, far exceeding Sweden's domestic inflation level.
However, the wealth growth of the Nobel Foundation has not always been so smooth. Until World War II, the wealth left by Mr. Nobel was still shrinking, and the purchasing power of the bonuses of early Nobel Prize winners also went from bad to worse. It was not until the 1990s that the actual purchasing power of Nobel Prize money returned to its original level.
Early foundations were unable to make ends meet
On November 27, 1895, the year before Nobel's death, he signed a famous will. Nobel stipulated in his will that most of his legacy (about 31 million Swedish kronor) would be converted into funds and invested in "secure securities". Investment revenues would be "distributed annually in the form of bonuses to those who have made the greatest contribution to mankind in the past year", realizing Nobel's ideal of encouraging human scientific and technological progress during his lifetime.
The Nobel Foundation was formally established in 1900 and, after deduction of legal and administrative costs, it was estimated to be about 22 million Swedish crowns. According to Mr. Nobel’s “safe securities” principle, the Foundation could only invest in Phnom Penh bonds, mortgage loans on property, etc. In 1901, the first Nobel Prize was awarded, and each winner received a prize of 150,000 Swedish crowns.
However, humanity has experienced two world wars in the 20th century and later, which, in addition to bringing death and destruction, also brought rapid inflation.High inflation corroded the actual purchasing power of Nobel heritage, and by 1940, the bonus scale had ranged from 150,000.Swedish kronaTo 90,000 Swedish kronor, if inflation level is taken into account, the actual purchasing power is already very low. An early foundation manager lamented: "Inflation is a huge invisible killer, and the bonuses we give can hardly afford to buy a good car." The Nobel Foundation had no choice but to call the Swedish government to ask for assistance.
In 1946, the Swedish government granted the foundation tax exemption, and in 1953 the United States followed the Nobel Foundation’s US investment income tax exemption, both measures equivalent to annual savings.%The biggest breakthrough was in the early 1950s, when the Swedish government redefined “safe securities” to allow the Foundation to invest in stocks and the broader securities market. The Foundation quickly adjusted its strategy to shift from bonds to stocks, grabbing the post-war economic recovery and global stock market dividends. In the 1980s, the Foundation’s shareholding in overseas jumped from 8% to 22%, and annual returns jumped from less than 2% to 4%.%-5%。According to Nobel's official website, it was not until 1991 that the actual purchasing power of Nobel Prize bonuses (adjusted for inflation) finally returned to the level of 1901.
Wealth management outsourcing to top management companies
In recent years, the Nobel Foundation has been actively choosing to “outsource” wealth management to the world’s top asset management companies, as well as well-known agencies such as Belgrade. Though these agencies charge high management fees and profits bonuses, they ensure professional operation. In 2024, the Nobel Foundation assets are allocated to: stock securities 56%, fixed income/cash 12%, real estate/infrastructure 9%, alternative assets (such as hedge funds, etc.) 24%. This combination has achieved an annual return of 8.3% over the past 10 years, with a single-year return rate of 11.6% in 2024.
In 2016, the Nobel Foundation signed the United Nations Principles for Responsible Investment (PRI), which included social benefits in the framework of future investment considerations. In 2017, the foundation launched strict ESG (environmental, social, governance) guidelines, excluding investments in nuclear weapons, tobacco, and fossil fuels, and promoting invested companies to achieve net-zero emission goals. In 2021, the foundation reduced its holdings of oil stocks, and in 2024, about 80% of the invested companies in the foundation's investment portfolio are close to the emission reduction target. "We are not only looking for returns, but also holding wealth accountable for the future," Vidal Helixon, executive director of the foundation, said in the 2024 report.
However, high returns are also accompanied by risks. Following the global financial crisis in 2012, the funds shrunk to 3 billion Swedish crowns, with bonuses forced to be reduced by 20%. For this purpose, the Foundation increased the allocation ratio of the hedge funds and optimized the risk model and subsequently achieved a rebound of profits. In 2025, as global geo-risk increased, the Foundation planned to fine-tune its strategy to increase the allocation of fixed-income securities in response to sharp market volatility.
The Nobel Foundation reports that the foundation has adhered to the "Eternal Horizon" rule, which assumes that the fund will operate continuously without a date of expiration. The foundation's current investment framework fully considers factors such as risk, market volatility and social responsibility, and adheres to a long-term view.