Norway's fund rises 3.2%, led by oil, gas stocks

Friday, 27. October 2017 13:19

In a sixth consecutive quarter of growth, the biggest sovereign wealth vehicle benefited from performances of all asset classes. The Government Pension Fund Global, run by Norges Bank Investment Management, said it topped the rise of the benchmark index against which it is measured by 0.1 percentage points. Total returns in the entity, which topped $1 trillion in market value in September, were 3.2%. However, the krona's appreciation took out 250 billion kroner from the headline, bringing it to 7.95 trillion kroner ($970.8 billion).

Equity investments, which account for 65.9%, returned 4.3% in the three-month period. The share was bolstered by 0.8 percentage points. Fixed income, making up 31.6%, brought 0.8%, while the rest, in unlisted real estate, added 2.7%. Oil and gas stocks rose the most, 8.7% in a basket of international currencies, followed closely by basic materials. Consumer services were the biggest laggard in equities, returning 1.1%.

Withdrawals from Norway's oil fund, controlled by the central bank, came in at ten billion kroner ($12.2 billion), after 16 billion in the previous quarter. "We must be prepared for volatile stock markets, and can not expect such a return every quarter," said Yngve Slyngstad, chief executive.

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