KUALA LUMPUR (Aug 14): Norway’s sovereign wealth fund has pared back its exposure to Malaysian equities in the first half of 2025, while significantly expanding its holdings in local bonds, its latest filings reveal.
The Government Pension Fund Global (GPFG) — the world’s largest single investor — held stakes in 209 Malaysian companies worth US$2.53 billion as of end-June, down from 217 firms valued at US$2.71 billion at the close of 2024, according to The Edge’s review of its half-year disclosure.
While trimming equities, GPFG more than tripled its investment in Malaysian government bonds and added debt securities issued by Petroliam Nasional Bhd (Petronas). Its fixed-income portfolio in Malaysia now stands at US$610 million.
Managed by Norway’s central bank, GPFG invests the nation’s petroleum revenue surplus across about 8,500 companies worldwide, with total assets nearing US$2 trillion.
In Malaysia, the fund exited 32 counters during the first half, including Malaysia Airports Holdings Bhd — privatised earlier this year — as well as QL Resources Bhd, Westports Holdings Bhd, Farm Fresh Bhd, and Hap Seng Consolidated Bhd. It also sharply reduced stakes in Iskandar Waterfront City Bhd (to 2.61% from 5.02%) and Cahya Mata Sarawak Bhd (to 1.46% from 3.86%).
Meanwhile, GPFG added 24 new Malaysian stocks, among them Elridge Energy Holdings Bhd, AuMas Resources Bhd, Malayan Cement Bhd, Hume Cement Industries Bhd, and Lim Seong Hai Capital Bhd. It also increased several existing positions, most notably in Pentamaster Corp Bhd (KL:PENTA), raising its stake to 5.07% from 1.62%.
By sector, financials comprised over one-third of the fund’s Malaysian equity holdings at mid-year, followed by industrials (18%) and consumer staples (8%). GPFG holds no private real estate or unlisted renewable energy infrastructure in Malaysia.
Overall, its Malaysian investments totalled US$3.14 billion — around 0.2% of its global portfolio.
Globally, GPFG posted a 5.7% return in the first six months of 2025, driven largely by strong equity markets, particularly financial stocks, said Nicolai Tangen, CEO of Norges Bank Investment Management. Equities returned 6.7%, fixed income 3.3%, unlisted real estate 4%, and unlisted renewable energy infrastructure over 9%.
As at end-June, 70.6% of GPFG’s assets were in equities, 27.1% in fixed income, 1.9% in unlisted real estate, and 0.4% in unlisted renewable energy infrastructure.
