As with a number of pension funds around the globe, Norway's Government Pension Fund Global has partaken in the losses associated with BP (NYSE:BP) and the oil spill, in the last quarter losing a huge $25 billion loss.
All of that wasn't from BP of course, but the value of the holdings in BP did fall in the quarter from 18.89 billion kroner to 10.56 billion Norwegian kroner.
Still, BP was the largest loser in the overall portfolio of the pension fund, which Norway uses to invest its oil revenue through. The value of their holdings at the end of the quarter in BP was $1.71 billion.
Interestingly, according to the CEO of Norges Bank Investment Management, the manager of the fund, they have continued to invest in BP throughout the quarter, citing the need to increase their holdings in the oil giant because it had dropped below the average holdings they had in some of their European stocks.
While BP was the biggest loss in relationship to an individual company in the fund, Europe was the worst performer for equity investments, where the fund has about half of their capital invested.
The $25 billion in investment losses was countered by the currency exchange, which helped the fund grow 2.792 trillion kroner in the quarter. Most of that was led by the strength of the British pound and U.S. dollar.
2 comments:
This article is bullish on stocks. Check it out.
Stocks are still cheap
Norway Pensions not the only country affected by the BP loss.
Post a Comment