Norway Oil Fund CEO Warns $2.3 Trillion Fund Faces Tougher Times After $185 Billion Profit
Updated
Updated · CNBC · Aug 12
Norway Oil Fund CEO Warns $2.3 Trillion Fund Faces Tougher Times After $185 Billion Profit
2 articles · Updated · CNBC · Aug 12
Summary
$185 billion in first-half profit prompted Nicolai Tangen to warn that investors should not expect the next six months to match the last, despite the fund’s 12.95% return.
A 15.98% second-quarter surge reversed a 2.6% first-quarter drop, with semiconductor holdings including Nvidia, TSMC, Samsung and SK Hynix driving what Tangen called very concentrated gains.
The $2.3 trillion fund will not take profits or rebalance, he said, because NBIM stays close to its index and owns about 1.5% of all listed companies globally.
Tangen said markets had been unexpectedly resilient through the U.S.-Iran war, Hormuz risks, trade barriers and renewed inflation, but warned any broad downturn would hit a fund that finances about 25% of Norway’s budget.
His advice to investors was to stay long term and diversified as global stocks remain volatile even after gains of more than 10% this year in Wall Street and Europe.