Monitoring Desk
ISLAMABAD/NORWAY: Norway’s sovereign wealth fund, the globe most giant, said on Tuesday it recorded a loss of 1,637 billion Norwegian kroner in 2022, citing volatile markets.
Nicolai Tangen, CEO of Norges Bank Investment Management, said that the market had been impacted by war in Europe, high inflation, and increasing interest rates. This negatively impacted both the equity market and a bond market at the same time, which is very unusual.
The return on investment was -14.1%. Tangen said that all the sectors in an equity market had negative returns except for energy. At the end of 2022, a fund financed from taxes paid by the nation’s oil and gas industry still amounted to 12.43 trillion kroner.
Currency fluctuations boosted the fund’s value by 642 billion kroner
This is still higher than the 12.34 trillion kroner the fund held at the end of 2021, thanks to 1.09 trillion kroner in new tax inflows. Currency fluctuations also boosted the sovereign fund’s value by 642 billion kroner.
According to the fund, 69.8% of assets were in equities, 27.5 percent in fixed income, 2.7 percent in real estate, and 0.1 percent in renewable energy infrastructure.
