OSLO, Jan 31 (Reuters) – Norway’s sovereign wealth fund, one of many world’s largest buyers, on Tuesday reported a document lack of 1.64 trillion crowns ($164.4 billion) for 2022, bringing to an finish a three-year run of hovering income.
The earlier largest loss was 633 billion crowns in 2008.
“The market was impacted by struggle in Europe, excessive inflation, and rising rates of interest. This negatively impacted each the fairness market and bond market on the similar time, which could be very uncommon,” Chief Government Nicolai Tangen mentioned in an announcement.
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 yr, which was 0.88 share 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 corporations 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, modifying by Gwladys Fouche and Terje Solsvik
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