Norway Wealth Fund Gains 4% in Third Quarter as Stocks Rise

Norway’s $890 billion sovereign wealth fund returned 4 percent in the third quarter as stocks rallied amid bets sustained central bank stimulus will prop up a global expansion.

The fund’s return was 240 billion kroner ($30 billion), it said in a statement in Oslo on Friday. It’s stock portfolio rose 6 percent, its bonds gained 0.9 percent and its real estate holdings 2.4 percent.

“Equity investments performed strongest during the quarter, with positive return in all regions,” said Trond Grande, deputy chief executive officer of Norges Bank Investment Management, in a statement. The results are preliminary and the fund’s full report will be released on Oct. 28.

The Norwegian fund invests globally and largely follows indexes. It has been moving more into emerging markets over the past years to generate higher returns. It held 60.6 percent in stocks in the quarter, 36.3 percent in bonds and 3.1 percent in properties. Its mandate is to keep about 60 percent in stocks, 35 percent in bonds and 5 percent in real estate.

The government withdrew 30 billion kroner from the fund in the third quarter.

It faces challenges as the government is this year withdrawing money for the first time to cover budget needs. In its budget released on Thursday, the government revealed plans to withdraw a record amount of 121 billion kroner next year.

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