Norwegian sovereign wealth fund earned nearly 100 billion euros in six months

Norway’s sovereign wealth fund, which recently celebrated its 25th anniversary and remains by far the largest in the world, benefited from the stock market upturn which followed the dip caused by the health crisis. In the first half, he earned 990 billion crowns, or around 94.7 billion euros

According to the Bank of Norway, which manages the fund through its investment arm, at the end of June, the enormous woolen sock formed to finance the future expenses of the generous Norwegian welfare state saw its value reach 11.673 billion crowns (about 1.117 Billions of Euro’s). Amplifying a perceptible dynamic from the first trimester.

9.4% yield

The way out of the crisis is the business of the Norwegian sovereign wealth fund. According to data released on Wednesday, it returned 9.4% in the first half of the year. A performance barely lower than that of the whole of 2020, where it had posted a return of 10.9%.

How to explain this performance, beyond the simple stock market upturn? In a statement, the head of the fund, Nicolai Tangen, stressed that this is largely due to the particularly strong performance of the energy and finance sectors but also of technology and health stocks.

Bond investments, which represent 25.1% of assets, lost 2%. When real estate investments (which account for 2.4% of the portfolio) gained 4.6%. New asset class, still marginal (0.1%), investments in renewable energy projects not listed on the stock exchange posted a negative return of 1.9%.

Enough to satisfy the 8,800 companies at the end of 2020 of what remains one of the largest investors in the world, controlling nearly 1.5% of the global market capitalization.

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