Dwell
Norway’s wealth fund, one of many world’s largest buyers, has posted a document lack of 1.64 trillion crowns ($233 billion) for 2022, bringing to an finish a three-year run of hovering income as shares and bonds had been hit by the Ukraine battle and inflation.
The earlier largest loss was 633 billion crowns throughout the 2008 monetary disaster.
“The market was impacted by battle in Europe, excessive inflation and rising rates of interest,” chief govt Nicolai Tangen stated on Tuesday.
“This negatively impacted each the fairness market and the bond market on the similar time, which could be very uncommon.”
The loss ends a record-breaking streak for the fund, the place annual returns exceeded one trillion crowns in every of the three years from 2019 to 2021, amounting to greater than 4 trillion crowns mixed.
Nonetheless, regardless of the document loss, the worth of the fund rose general, by 89 billion crowns yr on yr, partly as a result of weak Norwegian forex and partly because of document 1.1 trillion crowns of money inflows into the fund.
The inflows in 2022 had been almost thrice the earlier document, of 386 billion crowns, set in 2008.
The fund invests the Norwegian state’s revenues from petroleum manufacturing.
As a significant crude exporter and Europe’s largest fuel provider after a drop in Russian fuel flows, Norway benefited from excessive vitality costs as a result of battle in Ukraine.
The fund holds stakes in additional than 9000 corporations globally, proudly owning 1.three p.c of all listed shares.
It additionally invests in bonds, unlisted actual property and renewable vitality initiatives.
– Reuters
