World’s largest fund posts first loss in three years

The world’s largest sovereign wealth fund lost €7.95bn in the second quarter, the first decline in three years, dragged down by falling global bond and stockmarkets.

The fund fell 0.9%, as its stock holdings lost 0.2% and its bonds declined 2.2%, the $870bn (€786.7bn) fund said in a statement yesterday. Its real estate holdings rose 2%.

“The return on fixed income investments was affected by an increase in yields in the fund’s main markets,” said chief executive of the fund Yngve Slyngstad.