Norwegian and Gulf sovereign wealth funds forced to sell assets

The top three oil-dependent sovereign wealth funds have been selling European equity holdings since May, a study showed on Monday, another sign of petrodollars being withdrawn from world markets.

However, Asian funds have continued to add European equities, according to the data from Nasdaq Advisory Services, which provides analysis on shareholder and investor activity.

Since May, the Saudi Arabian Monetary Authority has sold US$1.2 billion worth of equities across Nasdaq's European client base. That accounts for 13 per cent of its US$9.2 billion holdings in the European companies tracked by Nasdaq.

Norway's Norges Bank Investment Management has sold US$1.1 billion - about 2 per cent of the US$57.5 billion market value of its holdings. The Abu Dhabi Investment Authority has cut some US$300 million worth of shares from its US$3.6 billion holding.

"Over 2015, the three largest oil-dependent sovereign wealth funds have all been reducing their equity holdings in the region, with this trend accelerating over the second quarter and into the third quarter of the year," said Alexander Free, an analyst with Nasdaq's Advisory Services.

The data is based on a sample of 159 European companies, with a market value of US$1.87 trillion, Nasdaq says. They range from retail and telecommunications shares to financials and utilities.