On August 14th local time, thanks to the surge in technology stocks, the world's largest sovereign wealth fund - Government Pension Fund Global - released a profitable semi annual report.
Investing in technology stocks brings substantial returns
According to data released by the institution on Wednesday, the total return rate for the first half of the year was 8.6%, with a profit of 1.478 trillion kronor (138 billion US dollars), mainly due to strong returns on its investments in technology stocks.
By category, the fund's stock investments performed strongly in the first half of the year, with an overall return rate of 12.5%, while the fixed income and non listed real estate investment portfolios experienced marginal losses.
Specifically, the industries with the highest return on investment for the institution's stocks are technology, finance, and healthcare; The return rate of basic materials is the lowest.
The technology company achieved a very strong return rate of 27.9% during this period. The industry benefited from the strong demand for new AI solutions from the largest Internet and software companies and their semiconductor suppliers.
The return rate of the financial industry is 13.8%. The strong global economy and the increase in consumer borrowing have led to an increase in bank revenue. A stronger stock market and increased investment have also made positive contributions.
The return rate of healthcare stocks is 10.3%, thanks to strong demand for medical services, positive results from some major clinical studies, and increased demand for innovative therapies and technologies. More mergers and better biotechnology financing can also help strengthen the industry.
Distribution and return rate of Norwegian government pension fund investment industry
In addition, the top three heavy holdings of the fund at the end of the first half of the year were Apple, Microsoft, and Nvidia. In terms of investment targets, we reduced our holdings in Meta, Novo Nordisk, and ASML in the first half of the year, with our stake in Meta dropping from 1.22% at the end of 2023 to 1.18%; Holding shares in Novo Nordisk has decreased to 1.75%, down from 1.87% as of December 31 last year; During the same period, the shareholding in ASML decreased from 2.61% to 2.54%.
At the same time, the institution has shown new interest in energy stocks, increasing its holdings in three major energy stocks - ExxonMobil, Shell, and BP - in the first half of the year.
It is worth noting that the institution indirectly holds 2446 bitcoins, an increase of 938 from December 31, 2023.
Looking ahead, Nicolai Tangen, CEO of the institution, stated at a press conference that the stock market is not expected to rise as it did in previous years. Tangen stated that a significant amount of uncertainty and a "completely different geopolitical situation" mean that global stock markets are now facing more risks. In addition, the connections between the largest stocks have brought new risks to the fund, and the renewable energy infrastructure market is currently more attractive, prompting the fund to increase its investment efforts.
