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Biggest Wealth Fund Relies on Income Flows as Oil Cash Wanes

  • Fund says doesn't have to sell assets to make new purchases
  • Inflows declined to 17 billion kroner in first half of 2015
Updated on

Norway’s $820 billion sovereign wealth fund is so far coping with the near halt in the inflow of oil cash by using its growing investment income to implement portfolio shifts.

With Brent crude this year down about 50 percent from a year ago, the Norwegian government is injecting less cash into the fund. Inflows were just 17 billion kroner ($2 billion) in the first half of this year, compared with a quarterly average of 60 billion kroner over the past 10 years. The decline has been manageable so far, said Oeyvind Schanke, chief investment officer for asset strategies, at the Oslo-based fund.