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The world’s largest sovereign wealth fund Suffers Biggest Loss by Chinese stocks and Volkswagen AG
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Loading...Norway’s Wealth Fund posted its biggest loss in four years, dragged down by Chinese stocks and Volkswagen AG, just as the Norwegian government prepares to make its first ever withdrawals to plug budget deficits.
The $860 billion fund lost 273 billion kroner ($32 billion) in the third quarter, or 4.9 percent, the Oslo-based investor said on Wednesday. Its stock holdings declined 8.6 percent, while it posted a 0.9 percent gain on bonds and a 3 percent return on real estate. It was the first back-to-back quarterly loss in six years. The fund had a loss of 21.3 percent on Chinese stocks in the period and 16.6 percent on its emerging market equities.
“We have to expect fluctuations in the value of the fund when there are large movements in the market,” said Yngve Slyngstad, its chief executive officer. “The fund has a long-term horizon, however, and is in a good position to ride out short-term volatility.”
The fund, which has grown more than six-fold amid a boom in oil prices over the past decade.
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