Norway sovereign fund loses $34 bln in third quarter

Norway sovereign fund loses $34 bln in third quarter

OSLO

 

Norway's sovereign wealth fund saw a negative return of 2.2 percent in the third quarter, the country's central bank said yesterday, losing the equivalent of nearly $34 billion.

The Norway Government Pension Fund Global lost 374 billion kroner during the three-month period, with its value falling to the equivalent of $1.34 trillion at the end of September.

"The stock market saw a weaker quarter compared to the two previous quarters," the fund's deputy chief, Trond Grande, said in a statement.

"It was particularly the tech, industrials and consumer discretionary sectors which contributed negatively to the return," he added.

An appreciation of the Norwegian krone also crimped the fund's value.

Norway's wealth fund is the world's biggest, according to the Sovereign Wealth Fund Institute, just ahead of two Chinese funds.

Fuelled by revenues from Norway's state-owned oil and gas companies, the fund is aimed at financing future spending in the generous welfare state.

With just over 70 percent of its funds invested in shares, it holds equity in more than 9,000 companies and holds on average 1.5 percent of listed companies worldwide.