Norwegian pension fund, KLP, made a value-adjusted return of 1.1 per cent in the third quarter of 2021, it has revealed.

In total for the year to date it has returned 5.6 per cent (value-adjusted) and book returns to date are 3.5 per cent. Its investment result, which is the return in excess of that guaranteed by the company to its customers, totalled NOK 9.3bn after Q3.

Commenting, KLP group CEO, Sverre Thornes, said: “We are delighted with the good results, stable operations, and good returns on customer funds after the third quarter. The result in the last quarter is characterised by rising interest rates and a somewhat positive stock market.”

KLP Skadeforsikring, KLP Banken and KLP Kapitalforvaltning also saw good development in the quarter. All of them strengthened their market positions and reported good financial results. Overall, the subsidiaries’ profit before tax for the quarter amounted to NOK 187m, and NOK 492m so far this year.

In terms of other developments, the fund said it is over half-way through a five-year IT development programme to modernise the enterprise’s system solutions for pension processing, improve the ease of use for customers and pensioners, and increase efficiency and reduce costs over time.

In addition, September saw the company launch its roadmap to net zero emissions in 2050. The roadmap describes how KLP will work towards the goals of the Paris Agreement. In July, KLP decided to exclude 16 companies with links to Israeli settlements on the West Bank.

The decision was based on thorough assessments after the UN High Commissioner for Human Rights published a list of companies with operations linked to the Israeli settlements on the occupied Palestinian territory.

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