Sturdy returns: World’s largest wealth fund swells by $111bn in just six months
The world’s largest sovereign wealth fund has pulled in $111bn in the first six months of this year, some 0.28 per cent higher than the fund’s benchmark index.
The $1.4 trillion Norwegian fund, Norges Bank Investment Management, posted a 9.4 per cent return on investments in its half-year financials, as the value of its equities portfolio has been sent northbound.
“The equity investments had the most positive contribution to the return in the first half of the year, and especially the investments within the sectors of energy and finance,” fund boss Nicolai Tangen said.
Investments in energy companies paid off, Tangen explained, adding that those investments returned 19.5 per cent.
Whereas the return on unlisted renewable energy infrastructure was minus 1.9 per cent.
The return on the equity investments was 13.7 per cent, while fixed income saw a minus two per cent return.
The fund boss added that health and technology firms performed particularly well amid the pandemic, and held up momentum throughout the first half of the year.
“Technology companies returned 16.8 per cent. Several major technology companies saw a continued increase within digital advertisement”, Tangen added.