Afrigather The Norges Financial institution, Norway’s central financial institution, in Oslo, Norway, on Tuesday, Oct. 17, 2023.
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Norway’s large sovereign wealth fund on Wednesday posted first-half revenue of 1.48 trillion kroner ($138 billion), primarily pushed by sturdy returns on its investments in expertise shares.
The so-called Authorities Pension Fund World — the world’s largest sovereign wealth fund — mentioned it had a worth of 17.75 trillion kroner on the finish of June.
The fund’s general return for the six-month interval was 8.6%, which was 0.04 share factors decrease than the return on its benchmark index.
Nicolai Tangen, CEO of Norges Financial institution Funding Administration, mentioned on Wednesday that fairness investments gave a “very robust” return within the first half of the yr.
“The end result was primarily pushed by the expertise shares, as a result of elevated demand for brand new options in synthetic intelligence,” Tangen famous.
Norway’s sovereign wealth fund mentioned its fairness portfolio posted a return of 12.5% by means of the primary half of the yr, whereas its fastened earnings and unlisted actual property portfolios incurred marginal losses.
The fund reported adverse returns of 17.7% on its unlisted renewable power infrastructure portfolio throughout the primary six months of the yr. It mentioned larger capital prices had adversely affected the worth of investments within the interval from January to June.
Trying forward, NBIM’s Tangen mentioned in a information convention that inventory markets weren’t anticipated to rise in the way in which that they had performed in earlier years, in accordance with Reuters.
Tangen reportedly mentioned that quite a lot of uncertainty and a “utterly completely different geopolitical scenario” meant there have been now extra dangers to international shares.
One of many world’s largest traders, Norway’s sovereign wealth fund was established within the Nineties to take a position the excess revenues of the nation’s oil and gasoline sector. Up to now, the fund has put cash in additional than 8,700 corporations in over 70 international locations around the globe.
