Stocksak: Norway’s wealth funds suffer a loss of $43.5 billion in the third quarter.

© Stocksak. FILEPHOTO: A view of the Norwegian central banking, where Norway’s sovereign fund is located, Oslo (Norway), March 6, 2018. REUTERS/Gwladys Fouche

(Corrects fund size at $1.15 trillion in 1st para)

OSLO (Stocksak – Norway’s $1.15 Trillion fund, the largest in the world, suffered a loss of 449 Billion Norwegian Crowns ($43.47Billion) in the third quarter 2022. It said that the fund was hit by rising interest rates and high inflation, as well as war in Europe, which had a negative impact on markets.

The fund’s return of investment was minus 4.4% in the July-September period. This was 0.14 percentage points higher than the return from the benchmark index.

Trond Grande, deputy chief executive officer of Norges Bank Investment Management (which manages the fund), stated that the return was negative in fixed income, equities, and unlisted real property.

“The third quarter was marked with rising interest rates, high inflation, and war in Europe. Grande stated that the market has also been affected by this.

The sovereign wealth fund was established in 1996 and invests the Norwegian state’s oil and gas production revenues. It also holds stakes in more that 9,300 companies worldwide, and 1.3% of all stocks.

($1 = 10.3300 Norwegian crowns)

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