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- The world’s largest sovereign fund reported record profits of $213 billion in 2023.
- According to the fund’s CEO, the return on stocks reached 21.3% due to the rise in tech stocks.
- Technology dominance will be in the spotlight this week as Microsoft, Alphabet, Apple, and Amazon report their earnings.
The rally in tech stocks that drove the stock market in 2023 contributed to a record rally for the world’s largest sovereign wealth funds last year.
Norges Bank Investment Management announced on Tuesday that its 2023 profit will be a record 2.22 trillion kroner ($213 billion).
“Despite high inflation and geopolitical turmoil, the stock market in 2023 is expected to perform significantly better than the downturn in 2022,” Norges Bank Investment Management CEO Nicolai Tangen said in a note. “Technology stocks in particular performed very well,” he said. ”
Most of the fund’s portfolio categories performed in line with the market, with equity investments achieving the highest return growth at 21.3%, followed by fixed income at 6.1% and private renewable energy infrastructure at 3.7%. . However, the return on real estate investment he decreased by 12.4%.
Norges is the world’s largest sovereign wealth fund, with more than $1.5 trillion in assets under management. Founded in the 1990s to invest surplus profits from the country’s oil and gas sector, its portfolio included investments in more than 8,000 companies in more than 70 countries as of the end of 2023.
Tech stocks have been front and center for investors over the past year, driving the S&P 500’s impressive 25% gain in 2023. However, there are growing concerns that this rally will be short-lived and that the Magnificent Seven stocks that drove the rally will fall. The benchmark index’s biggest return last year is expected to fall in 2024 due to high valuations and slowing earnings growth.
Microsoft, Apple, Alphabet, Amazon, and Metaplatforms are all scheduled to report their fourth-quarter results this week, giving investors an idea of what to expect from the mega-cap tech companies this year. You can do it.
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