(Aug 14): Norway’s Government Pension Fund Global (GPFG) raised its equity investment in Malaysia in June from the end of 2023 as the world’s largest sovereign wealth fund grew in asset size and returns.

The fund also known as Norway’s Oil Fund has 214 Malaysian stocks worth US$2.32 billion (RM10.26 billion) in its portfolio by the end of June, according to its half-yearly disclosure. That compares with 180 companies worth US$2.05 billion on its books at the end of December.

GPFG also has US$178 million worth of Malaysian government bonds, but does not have any investments in real estate or renewable energy infrastructure in the country. 

Globally, GPFG generated a 12% return from equity investments but suffered losses of 1% from fixed income, 1% from unlisted real estate and 18% from renewable energy infrastructure.

"The equity investments gave a very strong return in the first half of the year,” said Nicolai Tangen, the chief executive of Norges Bank Investment Management that manages GPFG. “The result was mainly driven by the technology stocks, due to increased demand for new solutions in artificial intelligence.”

Malaysia nevertheless accounted for only 0.1% of all its global investment valued at US$1.55 trillion.

In Malaysia, new investment by GPFG included oil-and-gas services firm Keyfield International Bhd (KL:KEYFIELD), JCY International Bhd (KL:JCY) that makes components for computer storage and telecom services firm OCK Group Bhd (KL:OCK).

GPFG however dumped electronic services firm Kobay Technology Bhd (KL:KOBAY), speaker manufacturer Formosa Prosonic Industries Bhd (KL:FPI) and hypermarket operator Aeon Co M Bhd (KL:AEON), among others.

In terms of sectors, GPFG’s exposure is the highest in financials followed by industrial and technology. The fund raised its investment sum the most in real estate by 93%, energy by 79% and consumer staples by 43%.

The fund’s top three holdings in Malaysia by market value were CIMB Group Holdings Bhd (KL:CIMB), Malayan Banking Bhd (KL:MAYBANK) and Public Bank Bhd (KL:PBBANK).

https://www.theedgemarkets.com/node/722792