OSLO, (Pakistan Point News - APP - 17th Augst,2016) : Norway's sovereign wealth fund, the world's biggest, posted a positive return Wednesday for the second quarter, despite market pressure from Britain's decision to leave the EU. The fund registered a return of 1.3 percent, or 94 billion kroner ($11.5 billion, 10 billion euros), putting its value at 7.18 trillion kroner ($876 billion, 777 billion euros) at the end of the quarter, the central bank said Wednesday.
Real estate, which represented 3.1 percent of the portfolio, dragged the fund down, posting a negative return of 1.4 percent. Shares, which accounted for 59.6 percent of the fund's portfolio, and fixed income, which represented 37.4 percent, performed better posting returns of 0.7 percent and 2.5 percent respectively. Trond Grande, deputy chief executive officer of Norges Bank Investment Management said: "After a period of relatively stable markets at the beginning of the quarter, the British decision to leave the EU sparked a sharp decline in Europe.
"Markets recovered relatively quickly, but with major variations between sectors. Financials, for example, performed weakly." The fund registered a negative return of 0.6 percent in the first quarter losing some 100 million Euros every day, or 85 billion kroner ($10.4 billion,9.2 billion euros) for the period.