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World’s ideal sovereign wealth fund posts file $213 billion profit, boosted by tech shares

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

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Norway’s big sovereign wealth fund on Tuesday reported file profit of 2.22 trillion kroner ($213 billion) in 2023, supported by strong returns on its investments in skills shares.

The so-known as Executive Pension Fund World, regarded as one of the world’s ideal investors, stated the head result marked its highest return in kroner ever, with the fund’s return on investment final twelve months coming in at 16.1% for the twelve months. That used to be 18 basis aspects lower than the return on the fund’s benchmark index.

It follows a file loss of 1.64 trillion kroner for the total of 2022, which the fund attributed to “very peculiar” market conditions on the time.

“No topic high inflation and geopolitical turmoil, the equity market in 2023 used to be very stable, when compared to a venerable twelve months in 2022,” Nicolai Tangen, chief executive of Norges Bank Funding Management, stated in an announcement.

“Technology shares in explicit performed very effectively,” he added.

Norway’s sovereign wealth fund, the world’s ideal, used to be established within the Nineties to invest the extra revenues of the nation’s oil and gasoline sector. Up to now, the fund has set money in better than 8,500 companies in 70 international locations in each place in the world.

Closing twelve months, Norges Bank Funding Management stated its return on equity investments used to be 21.3%, its return on fastened earnings investments came in at 6.1%, whereas investments in unlisted accurate property returned -12.4%.

The fund stated a negative twelve months for its unlisted accurate property investments used to be due to rising hobby charges and subdued demand.

The fund returned 3.7% on investments in unlisted renewable energy infrastructure in 2023.

On the head of ultimate twelve months, Norges Bank Funding Management stated almost 80% of the fund used to be invested in equities, 27.1% in fastened earnings, 1.9% in unlisted accurate property and nil.1% in unlisted renewable energy infrastructure.

When requested at a news conference in regards to the geopolitical points prone to believe an price on shares in 2024, Norges Bank Funding Management’s Tangen replied, “The thing is that you have geopolitical hotspots in a range of locations this show day.”

“So, what are those that we would like to behold out for? Smartly, the stress between The United States and China is negative for economic boost and world alternate. The reality that folks are nearshoring extra and engaging manufacturing nearer to home is an inflationary power,” he continued.

“We are seeing the set of the geopolitical tensions within the Heart East by longer trading routes [and] higher freight charges. So, that is negative. And, obviously, the most provoking geopolitical conditions are those that you do now not be taught about, that have not came about yet.”

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