Norway’s wealth fund, one of many world’s largest buyers, has posted a document lack of 1.64 trillion crowns ($A233 billion) for 2022, bringing to an finish a three-year run of hovering income as shares and bonds had been hit by the Ukraine conflict and inflation.
The earlier largest loss was 633 billion crowns throughout the 2008 monetary disaster.
“The market was impacted by war in Europe, high inflation and rising interest rates,” chief government Nicolai Tangen mentioned on Tuesday.
“This negatively impacted both the equity market and bond market at the same time, which is very unusual.”
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.
Still, regardless of the document loss, the worth of the fund rose general, by 89 billion crowns year-on-year, partly because of the weak Norwegian foreign money and partly on account of document 1.1 trillion crowns of money inflows into the fund.
The inflows in 2022 had been practically 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 because of the conflict in Ukraine.
The fund holds stakes in additional than 9000 corporations globally, proudly owning 1.3 per cent of all listed shares.
It additionally invests in bonds, unlisted actual property and renewable vitality initiatives.
Source: www.perthnow.com.au
