Norway wealth fund posts $143 bln profit as AI surge lifts tech
ARENDAL, Norway, Aug 15 (Reuters) — Norway’s wealth fund, the world’s largest single stock market investor, posted a profit of 1,501 billion crowns ($143 billion) in the first half of the year, driven by strong equity markets and a weak crown currency, the fund said on Tuesday.
“The fund’s equity investments had a strong first half after a weak 2022. Equity investments returned 13.7% for the period,” the fund said in a report.
Technology companies delivered the period’s strongest return of 38.6% after a poor year in 2022, it added.
“The sector benefited from strong demand for new artificial intelligence solutions from the biggest internet and software companies and their semiconductor suppliers,” the fund said.
The fund’s overall return, however, was 0.23 percentage point less than the return on the benchmark index.
The $1.4 trillion fund, which invests the Norwegian state’s revenues from oil and gas production, owns on average 1.5% of all listed stocks worldwide. It also invests in bonds, unlisted real estate and renewable energy projects.
($1 = 10.5224 Norwegian crowns)
(Reporting by Gwladys Fouche; writing by Nerijus Adomaitis; editing by Niklas Pollard)
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”