A sovereign fund earns $111 billion in just 6 months


Achieve Norway Sovereign Wealth Fund At $1.4 trillion, the world’s largest, it posted first-half profit on Wednesday, as the value of its stock portfolio rose.

The fund generated a return on investment of 990 billion Norwegian kroner ($111 billion) between January and June, 0.28 percentage points higher than the fund’s benchmark.

The Norwegian Wealth Fund achieved a 4% return on investment and a profit of 382 billion Norwegian crowns ($45.7 billion) between January and March, surpassing its benchmark.

The fund benefited from the strategic shift last year, after it achieved returns of 123 billion dollars from investing in US stocks, after transferring its holdings of European shares to US technology stocks.

The Norwegian Ministry of Finance said, on April 10, 2021, that the Norwegian Wealth Fund should reduce the size of its global reference companies index between 25% and 30% in order to improve the tracking of companies, mainly by deleting small shares.

The move chimes with a growing awareness among global investors about environmental, social and governance risks, an area in which the Norwegian wealth fund has long been a pioneer.

The Finance Ministry said in its annual recommendation to parliament that the fund’s benchmark should be reduced to about 6,600 companies from 8,800 currently.


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