Petrobras Drop on Fuel Prices Sinks Brazil’s Sovereign Fund

Brazil’s refusal to allow higher gasoline prices is cutting into returns of its sovereign wealth fund, whose main holdings are shares of state-controlled Petroleo Brasileiro SA.

The fund, set up in December 2008 with 14.3 billion reais ($9.1 billion) in capital, lost 7.4 percent from the end of March through April 20, marking the biggest monthly decline since October, data from Brazil’s regulator show. Petrobras voting shares, which account for about 57 percent of the fund’s assets, fell 9.6 percent in the period, while preferred shares that make up 23 percent of total assets dropped 7.8 percent.