Norway’s $2 trillion sovereign wealth fund, the world’s largest, posted a 698 billion Norwegian crowns ($68.28 billion) profit for the first half of the year, lifted by strong returns among stocks in the financial industry, it said on Tuesday.
The fund’s overall return for the January-June period was 5.7%, which was 0.05 percentage point lower than the return on the fund’s benchmark index.
“The result is driven by good returns in the stock market, particularly in the financial sector,” fund CEO Nicolai Tangen said in a statement.
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.
The return on equity investments was 6.7% in the first half, while fixed-income returned 3.3%, unlisted real estate 4.0% and unlisted renewable energy infrastructure 9.4%, Norges Bank Investment Management (NBIM) said in its statement.
NBIM announced on Monday it was terminating contracts with external asset managers handling its Israeli investments and has divested parts of its portfolio in the country over the situation in Gaza and the West Bank.
Reuters
