| The world’s largest sovereign wealth fund posted its biggest loss in four years, dragged down by Chinese stocks and Volkswagen, just as the Norwegian government prepares to make its first ever withdrawals to plug budget deficits. The $860bn fund lost 273bn kroner ($32bn) in the third quarter, or 4.9%, the Oslo-based investor said. Its stock holdings declined 8.6%, while it posted a 0.9% gain on bonds and a 3% return on real estate. It was the first back-to-back quarterly loss in six years.
“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. “With the fund as big as it is today, this can have a considerable impact in the short term. The fund has a long-term horizon, however, and is in a good position to ride out short-term volatility.”..............................................Full Article: Source
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