Government Pension Fund Norway (discontinued), 1st half-year 2006

This return on the capital in the National Insurance Scheme Fund is reflected in the change in total capital in the period. In the same period the share prices on Oslo stock exchange, measured by the OSEBX index, rose by 13.0 per cent. The lower result of the National Insurance Scheme Fund is due to the Fund's large holdings of interest bearing securities.

Loans are important

At the end of first half 2006, loans were the Fund’s largest financial object with a value of NOK 108.2 billion. This is an increase of NOK 11.6 billion compared with the value at the end of 2005. Loans represented 55.5 per cent of the Fund’s total capital.

The value of the holdings of shares and other equity equalled NOK 53.2 billion at the end of first half 2006. Compared with the value at the end of 2005 this was an increase of NOK 2.6 billion. Shares and other equity counted for 27.3 per cent of total capital. Moreover, the value of the holdings of bonds equalled NOK 27.7 billion at the end of first half 2006. This was a decrease of NOK 6.6 billion compared with the value at the end of 2005. The value of the holdings of bonds counted for 14.2 per cent of total capital.

From 31 December 2004 and on, the National Insurance Scheme Fund’s commercial papers, bonds and shares and other equity are reported at market values. Previously, these financial assets were reported at their original cost, while unrealized gains/losses were recorded as other financial assets.

Government Pension Fund - Norway

The Government Pension Fund was established January 1 2006. The Fund is comprised of the Government Petroleum Fund (Government Pension Fund - Global) and the National Insurance Scheme Fund. The National Insurance Scheme Fund will administer the domestic part of the Fund, Government Pension Fund - Norway.

Tables:

• Table 1 National Insurance Scheme Fund. Balance sheet. 30 June 2001 - 30 June 2006. NOK million
• Table 2 National Insurance Scheme Fund. Bonds and shares and other equity by debtor sector. NOK million