Norway wealth fund hits record exposure to Portugal

Norway’s sovereign wealth fund had 27.3 billion Norwegian kroner invested in Portugal at the end of June, the highest level since it began investing in the country, according to the fund’s latest disclosures. The fund is one of the largest institutional investors in Portugal’s stock market and also holds government and corporate debt.

The portfolio rose 32% in the first half, increasing by 6.6 billion kroner. Of the total, 16.3 billion kroner, or about 60%, was invested in debt securities, while more than 11 billion kroner, or 40%, was invested in shares listed on the PSI, Portugal’s main stock index.

During the first six months of the year, Norges Bank increased its stakes in EDP and Jerónimo Martins. Its holding in EDP rose from 1.81% at the end of last year to 2.13%, valued at more than €400 million, making it the fund’s largest single equity investment in Portugal. In Jerónimo Martins, the owner of supermarket chain Pingo Doce, the stake increased from 0.29% to 1%.

The fund also expanded its exposure to Portuguese sovereign debt. At the end of June, it held €880 million in Portuguese Treasury bonds, up €320 million from the end of last year, plus €15 million in debt from the Azores autonomous region. Another €550 million was invested in debt issued by Portuguese banks and companies, including Novobanco, Santander Totta, EDP Servicios Financieros, BPI, EDP and EDP Finance.

Originally published at Eco.pt