Tech stocks sink world's biggest sovereign wealth fund

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Norway's sovereign wealth fund, the world's largest, shrank by some 1.68 trillion kroner ($173.2 billion) in the first half of the year, weighed down by tech stocks, the Norwegian central bank said.

The fund, in which the state places its oil revenues, posted a negative return of 14.4% in the first six months of the year, with its total value dropping to 11.65 trillion kroner at the end of June.

Since the start of the year, markets have been rocked by rising interest rates and high inflation due in particular to soaring energy prices and the war in Ukraine, all of which are fuelling fears of a recession.Technology stocks performed particularly poorly during the period, registering a 28% fall as the end of restrictions related to the Covid-19 pandemic dragged down giants such as Meta, the parent company of Facebook, Amazon, Apple and Microsoft.Stocks accounted for 68.

The value of its bond investments, which accounted for 28.3% of its assets, shrank by 9.3%, while its unlisted real estate holdings, which made up three percent of the portfolio, climbed by 7.1%. All of the fund's investments are outside Norway, Western Europe's biggest oil and gas exporter, so as to avoid overheating the Norwegian economy.

 

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