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The $ 1,000 billion investment fund is also struggling for commercial warfare

Monday - 27/08/2018 00:50
The $ 1,000 billion property fund Norwegian, which generated $ 20 billion in profit in the second quarter, thanks to oil, gas and technology stocks, thereby offsetting losses which this fund suffered by the earlier year 2018. However, the global investment model of this fund is facing many challenges.
Supported by the backdrop of the US stock market as well as rising oil and gas prices, the world's largest asset fund has a 1.8 percent return in the second quarter, $ 20 billion profit. For the whole 6 months, the yield of this fund was 0.24%.

Specifically in the assets of this fund, the portfolio grew by 2.7% in value, the portfolio of bonds was constant and investments in real estate had a yield of 1.9%.

Asset structure of this fund at the end of Q2 included 66.8% of stocks, 30.6% of bonds and 2.6% of real estate. The yield of the whole fund is lower than the reference index of 0.2%.

In its announcement, the fund said: "In the second quarter, fund yields were negatively affected by the threat of trade war and slower growth forecasts in Europe, China and the emerging economy. Italian political turmoil has had a negative impact on financial markets in Europe. "
Quỹ đầu tư khổng lồ 1.000 tỷ USD cũng chật vật vì chiến tranh thương mại

The yield of the investment fund Norges Bank Investment over the years, the first half of 2018 reached 0.24%. Source: Bloomberg.

By investing Norwegian oil money in foreign assets, the fund is designed to pick up the sweetness of globalization and the growth that it is created. However, this investment strategy has recently been threatened by the tariff policy that US President Donald Trump has imposed on major US trading partners around the world.

The fund, which owns 1.4 percent of its global equity value, must closely replicate its major stock indexes and thus be unlikely to avoid global uncertainty.

"The increased risk of trade barriers is a top concern for many investors, which of course has long-term global investment funds like us," said Trond Grande, deputy general manager of the fund. "

The fund lost 5.7 percent when it invested in the emerging market portfolio and 4 percent when it invested in Chinese stocks. The strongest growth drivers for the fund are oil and gas stocks, but the fund is planning to divest from the sector. Financial stocks were the most negative, especially Banco Santander.

Stock markets generally regained momentum in the second quarter after plunging in the first quarter amid high volatility. The fund focuses its investment on the European market and thus misses a lucrative return on the US stock market as the business here is cutting taxes.

The fund, however, remains a major shareholder of American technology giants. In particular, stocks that make up the largest share of the portfolio at the end of Q2 are Apple, Amazon and Microsoft. Bond portfolio of the fund includes most US government bonds, followed by Japanese and German government bonds.

The fund is also in the process of raising its stock exposure to 70%, while the remaining funds will be invested in bonds. This fund is also allowed to invest up to 7% of its assets in real estate.

Due to the low interest rates in the past few years, the Norwegian government has lowered its expected return from 4% to 3%. The sharp drop in crude oil has forced the government to withdraw some money from the fund for the first time in 2016. However, the current situation has changed, and oil prices have rebounded to help boost gasoline revenues. In June, the government injected more money into the fund for the first time in almost three years.

Source: ndh.vn - Translated by CoPhieuViet.com

 Tags: Norwegian, fund

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