The world’s largest pension fund is profiting from tech stocks

Nearly 9,000 companies across dozens of countries have the Norwegian sovereign wealth fund as a shareholder. Alongside other investments, this contributed to a substantial gain in the first half of the year. Tech stocks’ value increase was particularly notable.

The Norwegian sovereign wealth fund saw a triple-digit billion gain in the first half of the year, totaling around 1.5 trillion kroner (125 billion euros), according to Norway’s central bank. This corresponds to an 8.6% return, making it the world’s largest pension fund, managing 17.7 trillion kroner. The fund notably benefited from the surge in tech stocks driven by artificial intelligence growth.

Equities make up 72% of the fund’s portfolio, increasing by 12.5%. Besides technology, the financial and healthcare sectors performed well. In total, the fund has stakes in 8,763 companies across 66 countries. Bonds account for 26.1% of the fund, decreasing by 0.6%. There are nearly 1,500 bonds from 49 countries, along with approximately 900 properties in 14 countries and direct investments in renewable energy, such as wind farms, which lost 18% of their value. As of now, there are five such investments in four countries.

The pension fund is financed by the revenues from Norway’s state-owned oil and gas companies and is intended to fund future generations’ expenses in the Norwegian welfare state. It can only invest abroad and currently has stakes in nearly 9,000 companies. The fund adheres to strict guidelines regarding ethics, human rights, and environmental protection.

The Norwegian pension fund, financed by state funds from Norway’s oil and gas companies, reported a significant gain from its tech stock investments in the first half of the year. This growth, primarily driven by the surge in tech stocks due to artificial intelligence, resulted in a substantial increase in state funds held by the fund.

Despite the successful performance of tech stocks, it’s worth noting that the Norwegian sovereign wealth fund, supported by state funds, is diversified in its investments, with stakes in over 8,000 companies across various sectors and countries.

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