Record Norwegian Wealth Fund Loss in 2022
Norway Wealth Fund, one of the world’s leading state wealth funds, said in a statement that the fund’s investment loss in 2022 was 14.1 percent, corresponding to 1 trillion 637 billion Norwegian kroner ($ 164.4 billion).
It should be noted that the investment loss in question was the fund’s largest loss since the 2008 financial crisis. The fund’s loss in 2008 was recorded at NOK 633 billion.
The Fund’s Head of Investment Management, Nicolai Tangen, said markets were affected by the war between Russia and Ukraine, high inflation and rising interest rates.
‘ALL SECTORS EXCEPT ENERGY’
“This has had a negative impact on both the stock and bond markets at the same time,” Tangen said. This was a very unusual situation. With the exception of energy, all sectors in the stock market had negative returns.
The Norwegian Wealth Fund has been investing in foreign stocks, bonds and real estate markets with the return of the country’s oil and natural gas production since 1990. The Norwegian government gets to use very little of the fund’s income, with the rest being saved for future generations.
HAS INVESTMENTS IN 70 COUNTRIES
Although the fund has investments in 70 countries and more than 9,338 companies, excluding Norway, it owns 1.3 percent of the shares on global stock markets. The fund has been investing heavily in renewable energy projects in recent years.
The fund’s market capitalization was NOK 12.429 billion ($1.240 billion) as of December 31, 2022. (BRITISH AUTOMOBILE CLUB)