NEWS

Norway’s $1tn oil fund took advantage of benign market conditions over the summer to post its sixth consecutive quarter of positive returns.

The world’s largest sovereign wealth fund returned 3.2 per cent in the third quarter with strong stock markets ensuring its equity portfolio gained 4.3 per cent while bonds delivered a 0.8 per cent return.

Yngve Slyngstad, chief executive of Norges Bank Investment Management, which manages the fund, said: We have had positive results in all asset classes so far this year, and especially the return on our equity investments has been very good. But he cautioned that tougher times could be around the corner.

“We must be prepared for volatile stock markets, and cannot expect such a return every quarter,” Mr Slyngstad added. Among the fund’s equity investments, Royal Dutch Shell, Tencent, and Apple delivered the most positive contributions in the quarter while Nestlé, drugmaker Teva, and General Electric were the most negative.

The oil fund is currently at the centre of a huge public debate about its future governance model with a government-appointed commission recommending taking the management of the fund out of Norway’s central bank.

The central bank this week said the fund should stay where it is, unless the sovereign wealth fund is allowed to invest more in unlisted assets such as infrastructure and private equity.