OSLO, Jan 31 (Reuters) – Norway’s sovereign wealth fund, one of many world’s largest traders, on Tuesday reported a file lack of 1.64 trillion crowns ($164.4 billion) for 2022, bringing to an finish a three-year run of hovering earnings.
The earlier largest loss was 633 billion crowns in 2008.
“The market was impacted by warfare in Europe, excessive inflation, and rising rates of interest. This negatively impacted each the fairness market and bond market on the identical time, which may be very uncommon,” Chief Govt Nicolai Tangen stated in a press release.
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.
The fund’s return on funding in 2022 stood at minus 14.1% for the 12 months, which was 0.88 proportion level higher than the return on the fund’s benchmark index.
The return on the fund’s equities was minus 15.3%, whereas it was minus 12.1% on fixed-income investments. It earned a optimistic 0.1% return on unlisted actual property and 5.1% for renewable vitality initiatives.
Based in 1996, the fund invests income from Norway’s oil and fuel sector and holds stakes in some 9,300 firms globally, proudly owning 1.3% of all listed shares. It additionally invests in bonds, unlisted actual property and renewable vitality initiatives.
($1 = 9.9752 Norwegian crowns)
Reporting by Victoria Klesty, enhancing by Gwladys Fouche and Terje Solsvik
: .
