Norway’s sovereign wealth fund faces challenges to its global investment model
The $1-trillion fund gained 1.8% in the second quarter, but its hope of enjoying the fruits of globalisation is being challenged by Donald Trump’s protectionism
Oslo — Norway’s $1-trillion wealth fund had a return of $20bn in the second quarter as it faces growing challenges to its global investment model. The world’s biggest sovereign wealth fund gained 1.8% in the quarter, or 167-billion kroner ($20bn), the investor said in a statement on Tuesday. It rose 2.7% on stocks, bonds were unchanged, while real estate provided a 1.9% return. "North American and European stocks had a positive development in the quarter despite the prospect of increased trade barriers," Trond Grande, the fund’s deputy CEO, said in a statement. The fund’s stock holdings in emerging markets and China declined. Investing Norway’s oil wealth abroad, the fund has been set up to capture the fruits of globalisation and the growth it drives, a philosophy that’s now being challenged by US President Donald Trump’s imposition of tariffs on key trading partners across the world. The investor, which owns about 1.4% of global stocks, also sticks closely to indices, making it har...
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