Norway wealth fund thanks tech for $138B, however worries about inventory

Norway’s sovereign wealth fund is celebrating a $138 billion revenue from the primary half of the 12 months, however has put the champagne on ice.

The $1.6 trillion fund credited the returns to investments in tech. Pushed by surging demand for AI, expertise shares surged throughout early 2024.

Norway’s sovereign wealth fund — the biggest on the earth — reaped the advantages. Its fairness portfolio gained 12% within the six months by way of June.

Nvidia offered the biggest money injection. Microsoft, Google, Amazon, and TSMC additionally chipped in massive sums.

Over 1 / 4 of its fairness investments (26%) at the moment are in tech. However there are escalating fears about their monetary futures.

Tech shares have plummeted in latest weeks. The fund’s CEO, Nicolai Tangen, expects that worse remains to be to return.

Tangen has a number of anxieties concerning the market. One is the rising ranges of sovereign debt, which may trigger markets to plunge.

“It’s at a stage we haven’t seen [before], it’s persevering with to extend, and there appears to be little or no willingness wherever on the earth to actively attempt to scale back it,” he told Reuters.

At a information convention on Wednesday, Tangen additionally raised issues about international tensions. He cites the wars in Ukraine and Gaza as important danger components for the fund’s investments.

“There’s lots of uncertainty on the earth and we’re in a very completely different geopolitical state of affairs,” he mentioned.