The Government Pension Fund Global (GPFG) of Norway, the world’s largest sovereign wealth fund, increased its equity investments in Malaysia by the end of June, compared to the close of 2023, The Edge Malaysia reported. This change aligns with the fund’s overall growth in asset size and investment returns.

Commonly referred to as Norway’s Oil Fund, the GPFG held 214 Malaysian stocks valued at $2.32bn (MYR10.26bn) as of June 30, according to its latest half-yearly report. This is a notable increase from the 180 Malaysian companies worth $2.05bn listed in its portfolio at the end of December 2023.

In addition to equities, the GPFG’s investments in Malaysia include $178mn in government bonds. However, the fund has not made any investments in real estate or renewable energy infrastructure within the country.

Globally, the GPFG reported a 12% return on its equity investments. However, it experienced a 1% loss in its fixed income assets, a 1% loss in unlisted real estate, and an 18% loss in renewable energy infrastructure. 

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

Despite the increased investments, Malaysia accounts for only 0.1% of GPFG’s total global investment portfolio, which is valued at $1.55 trillion.

New investments by the GPFG in Malaysia include companies like Keyfield International Bhd, an oil and gas services provider; JCY International Bhd, a manufacturer of computer storage components; and OCK Group Bhd, a telecom services firm. 

On the other hand, the GPFG divested from companies such as Kobay Technology Bhd, an electronic services firm; Formosa Prosonic Industries Bhd, a speaker manufacturer; and Aeon Co M Bhd, a hypermarket operator.

Sector-wise, the GPFG’s largest exposure in Malaysia is in the financial sector, followed by industrial and technology sectors. The fund significantly increased its investment in real estate by 93%, energy by 79%, and consumer staples by 43%.

The top three holdings of the GPFG in Malaysia by market value are CIMB Group Holdings Bhd, Malayan Banking Bhd, and Public Bank Bhd.