The multi-billion-dollar amount corresponds to a return of 9.4 percent.
“The result is driven by good performance in the stock market, especially from Asian technology stocks,” the fund's CEO Nicolai Tangen says in the report.
The Oil Fund has profited greatly from the tech giants, but despite that, it is precisely the type of company Tangen warns investors and the public about.
A fall in the share values of the large AI companies will affect the Oil Fund very much, Tangen told the audience at an event during Arendalsuka, Norway's version of Almedalsveckan, on Tuesday.
Does not rule out crash
Tangen urged the audience to prepare for a sharp drop, or in the worst case, a wipeout of the entire fund, according to Norwegian NTB.
The Oil Fund's CEO referred, among other things, to the fact that several stocks fell 80 percent during the stock market crash of 1929, and he does not rule out that something similar could happen again.
"There is no country in history that has managed to maintain such a large fortune over time. Fortunes are always lost in the end," Tangen said, according to NTB.
“Very big effect”
There has been speculation in recent years about a possible bubble in the AI sector. If this is the case - and the bubble bursts - the consequences for the fund would be extensive.
The Oil Fund has exposure to technology giants such as Alphabet, Meta, Amazon and Apple, among others.
The impact would be very large, because such a large portion of the fund is linked to these stocks. And that's where a very large portion of the gains have come from in recent years.
After the record return, currency adjustments and deposits, the value of the Oil Fund increased by SEK 1,416 billion. The fund's total value thus amounted to NOK 22,683 billion as of the end of June.
