Norway’s giant sovereign wealth fund reported first-quarter profits of 1.21 trillion crowns ($109.9 billion) on Thursday, helped by strong returns on its investments in technology stocks.
so-called global government pension funds, The world’s largest sovereign wealth fundIt said it was worth 17.7 trillion crowns as of the end of March.
It described relative returns in the first three months of the year as “good” for equities and fixed income investments, but noted that “this was offset by weaker performance from real estate, resulting in negative overall results.”
In the first quarter, the fund’s equity investment return rate was 9.1%, fixed income investment return rate was -0.4%, and unlisted real estate investment return rate was -0.5%.
The Norwegian Wealth Fund said its unlisted renewable energy infrastructure returned -11.4%.
The fund’s return was 0.1 percentage points lower than the benchmark index.
The facade of the Central Bank of Norway (also known as Norges Bank) in Oslo, Norway.
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Norway’s sovereign wealth fund, one of the world’s largest investors, was established in the 1990s to invest surplus revenues from the country’s oil and gas industry. To date, the fund has invested in more than 8,800 companies in more than 70 countries around the world.
Trond Grande, deputy chief executive of Norges Bank Investment Management, said in a statement that the fund’s equity investments “delivered very strong returns in the first quarter, particularly driven by the technology sector.” Down”.
When asked by CNBC if he was worried about the recent weakness of some of the so-called “Magnificent 7” U.S. tech giants, Grande said market participants now appear to be reassessing their prospects for these companies.
The “Magnificent Seven” include Apple, Amazon, letter, Yuan, Microsoft, Nvidia and Tesla.
“We launched Mag(nificent) 7 last year, and returns this season have become more dispersed across those seven names, with Nvidia continuing to be driven by the enthusiasm for artificial intelligence. And then you’re going to see other companies like Tesla and Apple performance is even weaker,” Grande said Thursday on CNBC’s “European Roadmap.”
“So clearly the market is taking a closer look at these companies and their business models,” he added.
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