Norway Wealth Fund made a profit of $143 billion in the first half of the year
Norway’s $1.4 trillion state wealth fund made a profit of $143 billion in the first half. Total investments returned 10 percent. Thus, the largest equity fund in the world began to return after one of the worst years in its history.
According to the report published yesterday on its website, the fund gained just under 14 percent on equities between January and June, while fixed-income investments returned 2.3 percent. Real estate assets fell 4.6 percent.
The fund, which assesses Norwegian revenues such as oil and gas, announced a $164.4 billion investment loss in 2022 due to the Russo-Ukrainian war and high inflation causing market volatility.
THEY INVESTED MORE IN THESE SHARES
The comeback was supported by a rally in tech stocks after a weak 2022. The Oslo-based fund managed to navigate between inflation, tightening policies by US and European central banks, and woes in the banking sector.
At the end of June, the largest stocks in the fund were Apple, Microsoft, and Alphabet (Google), while the largest bond assets were US, Japanese, and German government bonds.
Norwegian Wealth Fund Stock Assets
On the other hand, the government invested 389 billion crowns in the fund in the six months to June.
WHAT IS THE NORWAY WEALTH FUND?
The fund (Norges Bank Investment Management-NBIM), which was established in the 1990s to assess Norwegian oil and natural gas revenues abroad, is known as the world’s largest shareholder.
The fund tracks an index based largely on a framework drawn up by the Norwegian parliament. Stocks represent 71.3 percent of the fund’s value, 26.4 percent for fixed income and 2.3 percent for unlisted real estate.