Norway's Government Pension Fund Global reported an impressive 8.6% return for the first half of the year, translating to a profit of 1.48 trillion kroner, or approximately $138 billion.

The fund's strong performance was primarily driven by technology stocks, particularly due to rising demand for artificial intelligence solutions, as highlighted by CEO Nicolai Tangen.

Notably, the fund has heavily invested in the so-called 'Magnificent 7' stocks, which include major players like Apple, Amazon, and Microsoft.

Dividends from technology companies doubled over the past six months, with significant contributions from Microsoft, Apple, and Nvidia.

Despite the overall success, the fund's returns slightly lagged behind its benchmark index by 0.04 percentage points.

While equities, which make up 72% of the portfolio, rose by 12.5%, fixed income and unlisted real estate investments experienced slight losses.

The unlisted renewable energy infrastructure portfolio faced challenges, reporting a negative return of 17.7% due to higher capital costs.

Additionally, the fund's Japanese investments suffered a 13.3% loss, impacted by the depreciation of the yen and shifts in Japan's monetary policy.

Tangen also noted geopolitical tensions, particularly the conflicts in Ukraine and Gaza, as significant risks that could affect the fund's investment outlook.

To enhance transparency, Tangen announced plans to provide updated investment overviews every six months on the fund's website.

By the end of June, the fund's total value reached 17.75 trillion kroner, reinforcing its status as the largest sovereign wealth fund in the world.