Soaring technology stocks helped to add $123 billion market gains to Norway’s sovereign wealth fund last year, according to Bloomberg. The gains resulted in more than 12% jump for the $1.3 trillion fund’s equity portfolio.
- Tech stocks record 42% return was more than bonds which returned 7.5%, while real estate shed 0.1%.
- The gains in tech stocks were mainly driven by the pandemic, which led to increased demand for products used in online working, education, trade, and entertainment.
- Norway’s sovereign fund CEO Nicolai Tangen doesn’t expect to replicate the record gains in tech stocks
- Tangen, who started as CEO of Norway’s wealth fund in September, wants to rely more on outside asset managers and technology to drive growth.
- Norway fund also targets sustainability and has already invested almost $12 billion in environmental mandates.
- Outside money managers now look after 4.7% of the fund’s portfolio, with fees allocated to those mandates more than doubling from a year earlier.
Norway fund has holdings in about 9,000 companies and now owns about 1.5% of global stocks and is in the process of raising its exposure to North American stocks.