The world's largest sovereign wealth fund generated returns of $111 billion in the first half of 2021 as the stock market hit record highs

• The largest sovereign wealth fund in the world generated a 9.4% return - translating to $111 billion - in the first half of the year.
• The Oslo-based $1.4 trillion sovereign wealth fund saw a 13.7% return on equities.
• Among the fund's largest holdings are mega-cap tech firms like Apple, Microsoft, Alphabet, Amazon, and Facebook.

The largest sovereign wealth fund in the world generated a 9.4% return - translating to $111 billion - in the first half of the year thanks to a soaring stock market driven by technology, finance, and energy shares.

Norway's Norges Bank Investment Management from January to June 2021 surpassed the fund's benchmark index by 28 basis points, the bank announced on Wednesday.

The Oslo-based $1.4 trillion sovereign wealth fund saw a 13.7% return on equities and a 2.0% slide in fixed income.

Among the fund's largest holdings are US mega-cap technology companies including Apple, Microsoft, Alphabet, Amazon, and Facebook.

The fund's returns from investments in non-listed renewable energy infrastructure slipped 1.9%.

"The equity investments had the most positive contribution to the return in the first half of the year, and especially the investments within the sectors of energy and finance," CEO Nicolai Tangen said in a statement.

Tangen, a former hedge-fund manager who has been in the post for nearly a year, has pointed to inflation as the biggest threat to the fund's returns, Bloomberg reported, especially amid a potentially overheating US economy.

The fund, created in 1990, invested in renewable infrastructure for the first time this year, a significant step from its previous portfolio which consisted only of stocks, bonds, and real estate.