Oil Cash Slump Triggers New Risks at World’s Biggest Wealth Fund
Norway Oil Fund: Monetary Policy, China Are Main Issues
The sudden slowdown in capital flows into the world's biggest sovereign wealth fund will add to risks and make it more costly to adjust its strategy, its chief executive officer said.
As crude has plunged below $50 a barrel, Norway's fund has seen a precipitous drop in cash injections from the government. It received just 12 billion kroner ($1.4 billion) in the second quarter, compared with an average of 60 billion kroner over the past 10 years.
``We still have a net positive inflow, although it's very small these days,'' Yngve Slyngstad, head of the fund, said in an interview in Oslo on Wednesday. While it won't immediately change its strategy, the fund won't have ``the same amount of cash to reinvest,'' he said.