by The $1.3 trillion Norwegian sovereign wealth fund, which owns actual property and firm shares all over the world, posted a file loss on funding of 1.64 trillion crowns ($164.4 billion; €151.9 billion) for 2022.
The sovereign wealth fund’s largest loss beforehand was 633 billion crowns in 2008.
How vital are the losses?
Fund overseer Norges Bank Investment Management mentioned the conflict in Ukraine and a mix of different elements created an atypical enterprise setting in 2022.
“The market was impacted by conflict in Europe, excessive inflation, and rising rates of interest. This negatively impacted each the fairness market and bond market on the identical time, which could be very uncommon,” mentioned Chief Executive Nicolai Tange.
The yearly loss ends a record-breaking streak during which annual returns from the fund exceeded one trillion crowns in every of the three years from 2019 to 2021 — greater than 4 trillion crowns mixed.
Despite the newest figures, the fund — financed from levies on the nation’s oil and fuel business — continues to be larger than it was the earlier 12 months. Because of latest tax inflows, it stands at 12.43 trillion crowns in comparison with 12.34 trillion crowns on the finish of 2021.
How do the figures break down?
Revenue from the Norwegian oil and fuel sector was used to ascertain the fund in 1996. Assets embody stakes in some 9,300 companies globally, representing about 1.3% of all listed shares. The fund additionally has investments in bonds, actual property, and renewable power tasks.
The return on the fund’s shares for 2022 was minus 15.3% with all equities outdoors the power sector exhibiting a loss. Return was minus 12.1% on fixed-income investments.
However, the fund did earn a constructive 0.1% return on unlisted actual property and 5.1% for renewable power tasks.
rc/rt (AFP, Reuters)
