Norway Wealth Fund’s AI-Fueled Gain Curbed by Property Slump
- Stock investments gained 12% on the back of AI demand
- Real estate investments dragged down returns against benchmark
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Norway’s $1.7 trillion sovereign wealth fund returned 8.6%, or $138 billion, in the first half as a surge in technology stocks was restrained by weak returns in bonds, real estate and renewable energy infrastructure.
Norges Bank Investment Management, which handles Norway’s fossil-fuel wealth, saw investments in equities gain 12% in the six months through June, it said in a statement Wednesday. The fund underperformed its own global benchmark index by 0.04 percentage point, NBIM said, with real estate continuing to weigh on returns and an underweight in equities also pulling downward.