Norwegian sovereign wealth fund earns USD138B in first half of 2024
Date
8/15/2024 4:29:43 AM
(MENAFN) Norway's sovereign wealth fund, the largest in the world with assets totaling USD1.7 trillion, reported a remarkable profit of 1.48 trillion Norwegian kroner (approximately USD138 billion) for the first half of 2024. This significant gain was largely attributed to the surge in global stock markets, particularly driven by the strong performance of technology stocks. The fund's CEO, Nikolai Tangen, highlighted that the increased demand for new solutions in the field of artificial intelligence was a key factor behind these results. However, Tangen also issued a cautionary note, emphasizing that the current market conditions are fraught with uncertainty and heightened risks, which could make it challenging to replicate the high returns seen in recent years.
The wealth fund's equity portfolio was the primary driver of its impressive performance, delivering a return of 12.5 percent in the January to June period. In stark contrast, the fund's fixed income and real estate investments faced declines, recording losses of 0.6 percent and 0.5 percent, respectively. Tangen reiterated that the boost from technology stocks, particularly those involved in AI, played a crucial role in the fund's overall success during this period. Despite the strong returns, the CEO warned that the landscape for equity markets has become increasingly risky, suggesting that future returns might not match the robust figures of the past.
Among the fund's most valuable holdings, its 1.28 percent stake in Microsoft stood out, valued at 453.8 billion kroner by the end of June. This was followed by significant stakes in Apple, worth 390.8 billion kroner, and Nvidia, valued at 377 billion kroner. Despite these successes, the fund's total return for the period was 8.6 percent, slightly underperforming its benchmark index by 0.04 percentage points. The fund's results underscore its heavy reliance on the tech sector's performance while highlighting the growing concerns about the volatility and risks that may impact future returns in the equity markets.
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