Norway’s $2.3 trillion sovereign wealth fund, the world’s largest, reported a record profit of 1.75 trillion Norwegian crowns, or about €159.7 billion, during the first half of the year, helped by strong gains in technology stocks.
The fund, which invests revenue generated from Norway’s oil and gas industry, said its performance was supported particularly by Asian technology companies. It owns an average of about 1.5 per cent of listed companies worldwide, making it one of the most influential investors in global financial markets.
Nicolai Tangen, chief executive of Norges Bank Investment Management, said strong returns from equities, especially Asian technology stocks, were the main driver behind the record result.
The fund also revealed for the first time that it owned a stake in SpaceX. Its updated holdings showed a 0.05 per cent interest in the US space company valued at $1.22 billion as of June 30.
The SpaceX holding was relatively small compared with the fund’s investments in some of the world’s biggest technology companies.
The fund held a 1.28 per cent stake in Nvidia valued at about $62 billion. Its Apple holding stood at 1.24 per cent and was worth around $52 billion, while its 1.17 per cent stake in Alphabet was valued at approximately $50 billion.
The fund also owned 1.27 per cent of Microsoft, worth about $35 billion, and a 1.7 per cent holding in Taiwan Semiconductor Manufacturing Company valued at roughly $34 billion.
Overall, the Norwegian fund has investments in around 7,100 companies around the world. Its portfolio extends beyond shares to include property and renewable energy projects.
The disclosure of its SpaceX investment comes after the company’s shares experienced sharp movements following its record-breaking initial public offering in late June. The stock initially climbed strongly before falling as investors questioned whether the company’s high valuation could be justified.
SpaceX was valued at about 77 times its expected revenue, raising concerns among some investors about the level of expectations already reflected in its market value.
The Norwegian fund’s large technology holdings have benefited from a strong rally in the sector, particularly among companies connected to artificial intelligence, semiconductors and digital infrastructure.
Its latest result highlights the significant impact that technology shares can have on the performance of the fund, which manages Norway’s oil wealth for future generations.
Despite the record profit, the value of the fund remains exposed to movements in global financial markets. Share prices, interest rates, currencies and property values can all affect its results from one reporting period to another.
The fund’s first-half performance nevertheless marks another strong period for Norway’s giant investment vehicle and underlines the growing importance of technology companies within its global portfolio.
