http://www.bloomberg.com/news/2014-10-29/norway-wealth-fund-gains-2-3-billion-in-quarter-on-bond-advance.html
Norway’s sovereign wealth fund, the world’s largest, reported its weakest return in more than a year as its investments were dragged down by turmoil in Europe.
The Government Pension Fund Global rose 0.1 percent in the quarter, its smallest return since mid-2013, the Oslo-based investor said today. The $860 billion fund’s stock holdings declined 0.5 percent, while its bonds returned 0.9 percent. Real estate returned 1.5 percent.
“Two quarters of strong returns were followed by a virtually flat quarter,” said Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund. “Increased geopolitical uncertainty in the vicinity of the euro area contributed to a negative return.”
Slyngstad warned it will become more difficult for the fund to generate high returns as interest rates have plunged amid sluggish global economic growth. A slump in equities in the quarter came amid evidence of slowing growth and as the world prepares to wean itself off Federal Reserve stimulus. Energy stocks plunged amid a decline in crude prices.
The fund lost 4.3 percent on its stock holdings in Europe, which represented 43.6 percent of its equity portfolio. Its North American stocks gained 3.4 percent, while equity holdings in Asia and Oceania rose 2.3 percent.
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