The world is largest sovereign wealth fund loses US$21 billion in the first half of 2020

Norway is rich in oil, and Statoil is the largest company in all of Northern Europe. Based on huge dividends from oil and gas assets and national financial allocations, Norway has the world's largest sovereign wealth fund, the Norwegian Government Pension Fund Global (GPFG).

 

 

In the first half of the year, this investment industry aircraft carrier with a total scale of more than US$1 trillion suffered a loss of US$21 billion, with a return rate of -3.4%.

 

The loss mainly occurred in the first quarter. Under the circumstance that the major global stock markets are fuse and limit-fall, GPFG has a floating loss of more than US$100 billion and an overall return rate of -14.6%, which is the worst performance since the fund was established in 1998.

 

GPFG's investment style is relatively aggressive. In 2017, it decided to increase the proportion of equity assets (stocks, futures, etc.) to 70%. This time the decision to adjust the position allowed it to fully enjoy the dividends of the subsequent rise in US stocks. And the plunge at the beginning of this year.

 

 

However, as the structural market from A-shares to US stocks emerged in the second quarter, GPFG's yield also bottomed out. From April to June this year, GPFG's quarterly return on investment was 13.1%, the second best performance in history. Among them, the return on equity assets is 18.1%, and the return on fixed-income assets such as bonds is also 3.8%.

 

At the end of the second quarter, the top four major stocks of GPFG were Microsoft, Apple, Amazon and Google in order. Alibaba and Tencent are also among the top ten major holdings of GPFG.

(Images from the internet)