Norway's Wealth Fund Faces Uncertain Future Amid Stock Market Volatility

Norway's $1.7 trillion wealth fund, one of the largest investors globally, warns of uncertain stock market returns in the future. The fund achieved a profit of $138 billion in the first half of the year but anticipates increased risks and volatility. Technology stocks drove its recent gains.

Norway's $1.7 trillion wealth fund, one of the world's largest investors, faces uncertain future returns due to increased market risks, the CEO said Wednesday. The fund, which channels the country's oil and gas revenues into stocks, bonds, real estate, and renewable energy, owns about 1.5% of all listed stocks worldwide.

Despite posting $138 billion in profits in the first half of the year, buoyed by global stock market rises, CEO Nicolai Tangen cautioned that such performance is unsustainable. 'There is a lot of uncertainty in the world, and we are in a completely different geopolitical situation,' Tangen stated.

The fund's equities gained 12.5%, while fixed-income investments and real estate lost ground. Notably, its technology stock holdings, including significant stakes in Microsoft, Apple, and NVIDIA, were crucial drivers of this growth. However, it recorded an 18% loss in unlisted renewable energy infrastructure.

(With inputs from agencies.)