Norway Oil Fund Returned 1.8% in 2Q Amid Higher Stock Markets

Date : 08/21/2018 @ 5:03PM
Source : Dow Jones News
Stock : Bradesco PN (BBDC4)
Quote : 33.72  -0.23648 (-0.70%) @ 6:45AM
Bradesco share price Chart

Norway Oil Fund Returned 1.8% in 2Q Amid Higher Stock Markets

Amazon com (NASDAQ:AMZN)
Historical Stock Chart

2 Years : From Oct 2017 to Oct 2019

Click Here for more Amazon com Charts.

By Dominic Chopping


Norway's sovereign wealth fund, the world's largest, made a positive return of 1.8% on its investments in the second quarter of 2018 as higher global stock markets boosted its equity investments, it said Tuesday.

By overall sector, oil and gas companies were the strongest performers in the second quarter, thanks to higher oil prices in the wake of brisk demand and OPEC quota discipline.

Norges Bank Investment Management, the arm of the central bank that manages the so-called oil fund, said the annual return equated to 167 billion Norwegian kroner ($19.7 billion).

"North American and European stocks had a positive development in the quarter despite the prospect of increased trade barriers," said Norges Bank Investment Management Deputy Chief Executive Trond Grande.

However, the prospect of increased trade barriers and a weaker growth outlook in Europe, China and emerging markets as well as political uncertainty in Italy all limited stock market gains, it added.

The fund held 66.8% in equities, 30.6% in fixed-income assets and 2.6% in real estate at the end of the quarter.

The total value of the fund at June 30 was NOK8.337 trillion, and it noted that the depreciation of the krone against the U.S. dollar during the quarter increased the fund's value by NOK47 billion.

In individual stocks, NBIM said Inc. (AMZN) made the biggest positive contribution to the fund's return in the quarter, followed by Apple Inc. (AAPL) and Royal Dutch Shell PLC (RDSA).

Banco Santander SA (SAN), Taiwan Semiconductor Manufacturing Co. (TSM) and Banco Bradesco SA (BBD) made the biggest negative contributions, it said.

Equity investments returned 2.7% in the quarter, while unlisted real-estate investments returned 1.9% and fixed-income investments 0.0%, NBIM said.

The fund transferred NOK2 billion to the government in the quarter, but Mr. Grande said: "In June, the fund had its first inflow since 2015. For the quarter as a whole we still had outflow."

The oil fund was set up in the 1990s to convert Norway's vast oil wealth to global financial assets, partly to shield the country's budget from oil-price fluctuations.


Write to Dominic Chopping at; Twitter: @domchopping @WSJNordics


(END) Dow Jones Newswires

August 21, 2018 04:48 ET (08:48 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

Finance Manila is owned and operated by ADVFN PLC.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:fm D:20191021 03:48:08