Norway's Sovereign Wealth Fund Reaps $138 Billion Profit, Boosted by AI and Tech Stocks

Norway Wealth Fund Profits $138 Billion in H1 as AI Demand Lifts Tech

ARENDAL, Norway (Reuters) -Norway's $1.7 billion sovereign wealth fund, the world's largest, posted a profit of 1.48 trillion Norwegian crowns ($138 billion) in the first half of the year as stock markets rose, the fund said on Wednesday. "The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence," CEO Nicolai Tangen said in a statement. The fund's overall return for the period was 8.6%, 0.04 percentage point lower than the return on the fund's benchmark index. The fund, which invests the Norwegian state's revenues from oil and gas production, is one of the world's largest investors, owning on average 1.5% of all listed stocks worldwide. It also invests in bonds, real estate and renewable energy projects. ($1 = 10.7122 Norwegian crowns) (Reporting by Gwladys Fouche in Arendal, editing by Terje Solsvik)

Norway wealth fund posts $138 billion profit in H1 as AI demand lifts tech

"The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence," CEO Nicolai Tangen said in a statement. The fund's 1.28% stake in Microsoft was the single most valuable holding, worth 453.8 billion crowns at the end of June, followed by a stake in Apple valued at 390.8 billion crowns and NVIDIA at 377 billion crowns. While the fund's overall return was 8.6% in the first half of the year, it slightly underperformed its own benchmark index. The fund, which invests the Norwegian state's revenues from oil and gas production, is one of the world's largest investors, owning on average 1.5% of all listed stocks worldwide. It also invests in bonds, real estate and renewable energy projects. Its small portfolio of unlisted renewable energy infrastructure posted an 18% loss in the first-half of 2024, it said. (Reporting by Gwladys Fouche in Arendal, editing by Terje Solsvik and Ana Nicolaci da Costa)

World's largest sovereign wealth fund posts $138 billion in first-half profit as AI demand boosts tech

The Norges Bank, Norway's central bank, in Oslo, Norway, on Tuesday, Oct. 17, 2023. Norway's massive sovereign wealth fund on Wednesday posted first-half profit of 1.48 trillion kroner ($138 billion), primarily driven by robust returns on its investments in technology stocks. The so-called Government Pension Fund Global -- the world's largest sovereign wealth fund -- said it had a value of 17.75 trillion kroner at the end of June. The fund's overall return for the six-month period was 8.6%, which was 0.04 percentage points lower than the return on its benchmark index. Nicolai Tangen, CEO of Norges Bank Investment Management, said on Wednesday that equity investments gave a "very strong" return in the first half of the year. "The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence," Tangen noted. One of the world's largest investors, Norway's sovereign wealth fund was established in the 1990s to invest the surplus revenues of the country's oil and gas sector. To date, the fund has put money in more than 8,700 companies in over 70 countries around the world.

World's Largest Sovereign Wealth Fund Sees $138B Profit Boost Fueled By AI, After Its CEO Cautioned About Tech 'Froth'

The world's largest sovereign wealth fund, owned by Norway, has reported a profit of $138 billion in the first half of the year, largely driven by robust returns on its technology stock investments. What Happened: As per the official report, the Government Pension Fund Global, regulated by Norges Bank Investment Management (NBIM) posted a first-half profit of 1.48 trillion kroner ($138 billion). The fund's value stood at 17.75 trillion kroner at the end of June. The overall return for the six months was 8.6%, slightly lower than its benchmark index by 0.04 percentage points. Nicolai Tangen, CEO of Norges Bank Investment Management, stated that equity investments yielded a "very strong" return in the first half of the year. He attributed this success mainly to technology stocks, which saw increased demand for new solutions in artificial intelligence from internet and software companies and semiconductor suppliers. Apart from technology, the fund's investments in financials and health care also reaped high returns. See Also: Elon Musk Might Have Triggered A BlueSky User Boom With His Controversial UK Riot Remarks: Report Why It Matters: The Norwegian sovereign wealth fund's significant profit is noteworthy, especially considering the concerns raised by Nicolai Tangen in April about "froth" in the technology sector. Despite his caution, the fund's tech investments have paid off, demonstrating the potential of artificial intelligence solutions. This is despite Goldman Sachs' skepticism about the return on AI investments due to their high costs. The fund's performance also underscores its strategic investment choices. In March, it was reported that "Magnificent 7" stocks, including tech giants like Apple Inc., and Amazon.com Inc., were the star attractions for the fund. Apart from Apple and Amazon, the "Magnificent 7" group includes Alphabet Inc.'s Google, Meta Platforms Inc., Microsoft Corp., Nvidia Corp., and Tesla Inc. Check This Out: Lawmakers Made Huge Investments This Year. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool Photo courtesy: Pixabay This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs

Norway's $1.7 trillion wealth fund made billions from tech in 2024 -- now it's slashing its stake in Meta, Novo Nordisk and ASML

Norway's $1.7 trillion sovereign wealth fund returned 8.6%, or $138 billion, in the first half as stocks surged. Norges Bank Investment Management, which handles Norway's fossil-fuel wealth, saw investments in equities gain 12% in the six months through June, it said in a statement Wednesday. The fund underperformed its benchmark by 0.04 percentage points, NBIM said, with real estate continuing to weigh on returns. Created in the 1990s to invest Norway's oil and gas revenues abroad, the fund is the world's biggest single owner of equities. It invests according to a strict mandate from the Finance Ministry, measuring itself against a benchmark index based on the FTSE Global All Cap Index for equities and Bloomberg Barclays indexes for fixed income. The bulk of NBIM's capital is in publicly listed equities. "Equity investments gave a very strong return in the first half of the year," Chief Executive Officer Nicolai Tangen said Wednesday. "The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence." Fixed-income investments were down 1%, as was the value of unlisted real estate holdings. Unlisted renewable energy infrastructure dropped 18%, the fund said. The fund has a higher share of short-maturity bonds than the benchmark index, which contributed positively, it said. After gaining in the first half, global stock markets have dipped in recent weeks and remain on edge. The outlook for Federal Reserve interest-rate cuts, as well as lukewarm results from tech giants such as Amazon.com, Microsoft Corp and Alphabet Inc have fed the volatility. NBIM said yesterday that it pared its stakes in Meta Platforms Inc., Novo Nordisk A/S and ASML Holding NV -- all among its top 10 holdings -- during the first half of the year. The fund has traditionally given an annual update on the contents of its portfolio, but will do so twice a year going forward, Tangen said. Apple Inc., Microsoft Corp. and Nvidia Corp. were its three biggest equity investments at the end of June. With stakes in over 8,800 companies worldwide, NBIM has been stepping up efforts to use its clout to influence them, specifically on issues related to climate change, gender diversity on boards of directors and executive pay.

Norway wealth fund flags risk to stock markets after posting $138 billion profit

The fund posted on Wednesday a profit of 1.48 trillion Norwegian crowns ($138 billion) in the first half of the year as global stock markets rose. "When you look at how the fund has developed, it looks fine... But this will not carry on this way," Nicolai Tangen told a news conference on the fund's half-year results. "This is not how stock markets work in the long term. There is a lot of uncertainty in the world and we are in a completely different geopolitical situation." He added: "There are more risks to stocks markets now than there was before." The fund's equity portfolio saw a return of 12.5% in the period from January to June, while its fixed income and real estate assets incurred losses of 0.6% and 0.5% respectively. "The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence," Tangen said in a statement. The fund's 1.28% stake in Microsoft was the single most valuable holding, worth 453.8 billion crowns at the end of June, followed by a stake in Apple valued at 390.8 billion crowns and NVIDIA at 377 billion crowns. While the fund's overall return was 8.6% in the first half of the year, it slightly underperformed its own benchmark index. Its small portfolio of unlisted renewable energy infrastructure posted an 18% loss in the first-half of 2024, it said. (Reporting by Gwladys Fouche in Arendal, editing by Terje Solsvik, Ana Nicolaci da Costa and Barbara Lewis)