Norway sovereign wealth fund is one of the largest investors in the world, controlling almost 1.5% of the world’s stock market capitalization. As a result of its weight, it imposes ethical, climatic, or social requirements on the companies in which it invests.
In the aftermath of the Covid-19 crisis, Norway sovereign fund announced Wednesday, August 18, that it had gained nearly 100 billion euro ($116 billion) since the beginning of this year.
At the end of June, its value was 11,673 billion kroner, or 1,117 billion euros.
The fund generated a return of 9.4% in the first half of the year, a gain of 990 billion kroner (94.7 billion euros), mainly due to its investments in shares, which represent 72.4% of its portfolio and have appreciated by 13.7%.
Energy and finance
Nicolai Tangen, the fund’s director, noted the particularly strong performance of the energy and financial sectors, as well as technology and healthcare.
Bonds, which represent 25.1% of the assets, fell by 2%, while real estate investments (2.4% of the portfolio) gained 4.6%. Investments in unlisted renewable energy projects, the fund’s new asset class – still marginal – posted a negative return of 1.9%.
Present in 8,800 companies
The fund, which has existed since the 1990s, is intended to grow oil revenues so that the generous welfare state can continue to spend generously.
The fund is one of the largest investors in the world, controlling nearly 1.5% of the total markets’ capitalization. It indicated on Wednesday it would also focus on biodiversity, taking advantage of its weight to impose standards on companies that it invests in. The fund uses its influence to require ethical, climatic and social standards from companies that it invests in.
“Companies that are either dependent on or have a significant impact on biological ecosystems and biodiversity need to incorporate these considerations into their governance structures, strategy, risk management, assessments, and reporting,” the report stated.