World’s most involving sovereign wealth fund posts $138 billion in first-half profit as AI build a matter to boosts tech

The Norges Bank, Norway’s central bank, in Oslo, Norway, on Tuesday, Oct. 17, 2023.

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Norway’s huge sovereign wealth fund on Wednesday posted first-half profit of 1.48 trillion kroner ($138 billion), primarily pushed by sturdy returns on its investments in technology stocks.

The so-known as Executive Pension Fund Global — the world’s most involving sovereign wealth fund — said it had a mark of 17.75 trillion kroner on the tip of June.

The fund’s overall return for the six-month length became 8.6%, which became 0.04 share features decrease than the return on its benchmark index.

Nicolai Tangen, CEO of Norges Bank Funding Management, said on Wednesday that equity investments gave a “very sturdy” return within the first half of the year.

“The stay consequence became mainly pushed by the technology stocks, attributable to elevated build a matter to for fresh solutions in artificial intelligence,” Tangen worthy.

Norway’s sovereign wealth fund said its equity portfolio posted a return of 12.5% via the first half of the year, whereas its fastened profits and unlisted valid estate portfolios incurred marginal losses.

The fund reported harmful returns of 17.7% on its unlisted renewable energy infrastructure portfolio across the first six months of the year. It said elevated capital charges had adversely affected the worth of investments within the length from January to June.

Taking a ogle ahead, NBIM’s Tangen said in a news conference that stock markets weren’t anticipated to rise within the style they’d done in earlier years, in accordance with Reuters.

Tangen reportedly said that somewhat just a few uncertainty and a “entirely diversified geopolitical jam” supposed there had been now extra risks to global stocks.

One of many world’s most involving investors, Norway’s sovereign wealth fund became established within the Nineties to make investments the excess revenues of the country’s oil and gasoline sector. So far, the fund has build money in extra than 8,700 companies in over 70 countries across the world.