The Norwegian Offshore State Pension Fund, also known as the Oil Fund, posted solid profits in the first half of 2021. As the Norges Bank announced on Wednesday, the return was 9.4 percent, which equates to 990 billion Norwegian kroner (95 billion euros). On June 30, the fund, considered the world’s largest sovereign wealth fund, had a total value of 11.67 trillion crowns.
“Equity investments generated the most positive contributions to returns in the first half of the year,” said Nikolai Tangin, head of investment management at Norges Bank. Investments in the energy and financial sectors and in technology companies in particular would have paid off.
Insurance for future generations
The Norwegian Pension Fund acts as a guarantee for future generations when oil cannot be drilled. It is fueled by income from Norwegian oil and gas production, which is run by the central bank on behalf of the Treasury and invested in thousands of companies around the world, including large companies such as Microsoft, Apple and Amazon.
In the past six months, the equivalent of 14.1 billion euros has been withdrawn from the fund. 72.4 percent in equities, 25.1 percent in bonds and 0.1 percent in unlisted infrastructure and renewable energy.
