Norway’s Sovereign Wealth Fund Invests $1.57 Billion in Turkish Companies

Norway’s $1.75 trillion sovereign wealth fund increased its exposure to Türkiye in 2024, investing more than $1.57 billion in shares of 44 Turkish companies across multiple sectors. The move marks the fund’s largest-ever investment in Türkiye, underscoring growing foreign institutional interest despite ongoing global market volatility.

World’s Largest Sovereign Fund Expands Türkiye Exposure

Norway’s sovereign wealth fund, the world’s largest with assets nearing $1.75 trillion, invested more than $1.57 billion in Turkish equities as of the end of 2024, according to data released by Norges Bank, which manages the fund.

The investments span 44 companies operating across a broad range of sectors, including banking, energy, telecommunications, aviation, healthcare, and manufacturing, Anadolu Agency reported, citing Norges Bank figures.

The fund, formally known as the Government Pension Fund Global, has steadily increased its presence in Türkiye over recent years, with 2024 marking its largest allocation to the country to date.

Koç Holding Tops Investment List

Koç Holding emerged as the fund’s single largest investment in Türkiye. The Norwegian fund holds a 0.90% stake in the conglomerate, valued at approximately $115.6 million.

Major positions were also taken in some of Türkiye’s most prominent publicly listed companies, including:

• Akbank, with an investment of $113.53 million

• Birleşik Mağazalar AŞ (BİM), valued at $111.38 million

• Turkish Airlines, with shares worth $82.96 million

• Turkcell, totaling $77.42 million

In the energy sector, the fund held shares worth around $90 million in Türkiye Petrol Rafinerileri AŞ (Tupras) and Astor Enerji AŞ.

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Healthcare and Industry See Higher Ownership Stakes

While most investments were minority positions, the fund’s largest percentage stake in its Turkish portfolio was in MLP Sağlık Hizmetleri AŞ, where it holds a 3.10% share valued at $63.97 million.

The fund also owns roughly 3% stakes in Aksa Akrilik Kimya Sanayisi and İş Yatırım, with total investments of $42.64 million and $62.30 million, respectively.

Norges Bank data indicate continued interest in Turkish firms operating in transportation, chemicals, automotive manufacturing, software, and steel production.

Long-Term Strategy and Global Reach

Established in 1990, Norway’s sovereign wealth fund invests surplus revenues from the country’s oil and natural gas production into global financial markets, including equities, bonds, and real estate.

Only a small portion of the fund’s annual returns can be used to support Norway’s national budget, while the bulk is preserved for future generations.

In 2024, the fund held investments in 8,659 companies across 63 countries. In recent years, it has also increased its focus on renewable energy and sustainable infrastructure projects.

As of Dec. 31, 2024, the fund’s total market value stood at 19.75 trillion Norwegian kroner, equivalent to approximately $1.74 trillion.

Türkiye Allocation Hits Record High

The Norwegian fund began investing modestly in Turkish assets in 2001 and significantly expanded its exposure after 2008.

Its investments in Türkiye rose from $485 million in 2021 to $1.2 billion in 2022 and $1.3 billion in 2023. The $1.57 billion allocation in 2024 represents the fund’s highest investment in the country to date.

Analysts view the increase as a signal of confidence in select Turkish corporates, despite economic challenges and shifting global financial conditions.

Record Profit Driven by U.S. Tech Rally

The investment expansion comes after the fund reported a record annual profit of $222 billion in 2024, the highest ever recorded in Norwegian kroner terms.

Norges Bank said the primary driver of the strong performance was a rally in U.S. technology stocks, which significantly boosted the fund’s global equity portfolio.

Source:  Anatolian News Agency