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At this time, I’ve been learning the the world’s largest investor’s portfolio. I observed three issues. First, this mega-fund loves proudly owning shares. Second, it loves UK business property. Third, it owns massive stakes in varied FTSE 100 and FTSE 250 companies.
Norway’s riches
In 1969, Norway found one of many world’s largest offshore oilfields. This discover boosted the Norwegian economic system, leaving the nation flush with money. To guard the economic system from oil-price swings — and to protect wealth for future generations — the federal government created a fund to take a position this windfall.
The Authorities Pension Fund International was created in 1990. After 29 years of operation, guess how a lot the Fund — which helps simply 5.6m folks — is value at this time? The reply is a huge $1.9trn, which equates to £1.4trn.
Placing this determine into perspective, it’s value greater than half (55.2%) of the UK’s FTSE All-Share index (at £2.56trn). That equates to about $343,000 (£254,000) for every Norwegian. Wow.
What the Fund owns
Presently, about 70.6% of the Fund is invested in world equities, unfold throughout 8,374 firms in 62 international locations. Certainly, it’s estimated that it owns round 1.5% of your entire world inventory market.
To generate revenue and scale back threat, 27.1% of it’s invested in fixed-income securities. These IOUs (money owed) issued by governments and corporations are much less dangerous than shares. The Fund has stakes in 1,583 bonds throughout 50 international locations. The remaining 2.3% is invested instantly into property and renewable-energy infrastructure. To me, that’s an awesome unfold of threat.
It loves UK property
The Fund states: “By spreading our investments broadly, we scale back the danger of dropping cash.” That mentioned, it has hefty publicity to UK equities, particularly listed property companies.
Take FTSE 250 agency Shaftesbury Capital (LSE: SHC), a £3bn enterprise that transformed into an actual property funding belief (REIT) in December 1999. Previously generally known as Capital & Counties Properties, the group has origins relationship again to 1933. The corporate owns £4.9bn of prime property in London’s West Finish, together with well-known areas reminiscent of Covent Backyard, Chinatown and Carnaby Avenue.
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The Fund owns over 1 / 4 (25.2%) of this REIT, making it Shaftesbury’s largest shareholder. In March 2025, the Fund exchanged contracts on a £570m deal to purchase 1 / 4 of the Covent Backyard property from Shaftesbury Capital.
Why have such hefty publicity to this particular person inventory? My guess could be first, prime London property has been an awesome long-term funding, as lots of our richest the Aristocracy would verify.
Second, following the 2020/21 Covid-19 disaster and 2022/23 interest-rate rises, the UK commercial-property market has struggled. Third, the Fund purchased at costs under the present share value of 153p. Fourth, rents present further dividend revenue to the Fund.
In different phrases, this entity is doing precisely what I goal to do: purchase sizeable stakes in good companies at truthful costs, with the goal of proudly owning these holdings over the long run. Due to this fact, I’ve added Shaftesbury Capital to my watchlist of UK shares!
