Posted August 24, 2014 1:37 pm by Comments

Bloomberg has reported that Norway’s $880 billion sovereign wealth fund, the world’s largest, is slowing its expansion into emerging markets. The fund has been accelerating its investment into emerging markets since 2012, when it won permission to realign large parts of its portfolio away from develop markets to help boost returns.

Yngve Slyngstad, the fund’s chief executive officer, said in a recent press conference:

“Our investment strategy for any country that sees the kind of turbulence, geopolitical risk, whatever you want to call what we have at the moment — we will neither be buying nor selling. This isn’t a situation that lends itself to our set strategy of investing more when we see volatility.”

China accounted for 2.4% of the total equity portfolio and was its largest stake in emerging markets, but Slyngstad said holdings in China are “miniscule relative to the size of its economy” due to Chinese rules or restrictions on overseas institutions owning shares.

To read the whole article, World’s Biggest Wealth Fund Slows Emerging Market Investment, go to the website of Bloomberg.

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