OSLO Oct 11 Friday's flash crash in sterling
was a correct move that reflected the expectations of the UK
economy, a senior official at Norway's sovereign wealth fund,
the world's largest, told Reuters on Tuesday.
The fund is one of Britain's biggest foreign investors,
owning shares in most top UK companies and holding $11 billion
in government bonds. It co-owns Regent Street, one of London's
premier shopping streets.
Conversely, Britain is crucial to the fund as its
second-largest investment location after the United States,
accounting for 10.2 percent of the fund's value at end-2015.
"It (the flash crash) was a permanent impact on the price.
So if you do believe in markets, it was a correct move. It
reflects the expectations of the UK economy," Oeyvind Schanke,
the fund's Chief Investment Officer for asset strategies, said
in an interview.
Asked whether he shared that view, Schanke said: "Yes, I do
believe in market forces and I do believe that investors have an
ability to price. And what that price move indicates to me is
that they are worried about what is happening in the UK."
He declined to say if the fund had taken any steps after the
(Reporting by Gwladys Fouche, editing by Terje Solsvik)