Norways national wealth fund lost 1.68 trillion Norwegian crowns ($174 billion) in the first half of the year, as equities and bonds were pummelling by worries of a worldwide recession and runaway price inflation.
According to Norges Bank Investment Management CEO Nikolai Tangin, the market has been characterised by rising interest rates, inflation, and conflict in Europe.
The 1996-founded firm invests in and owns holdings in Norwegian oil and gas earnings.
Except for energy, which witnessed a 13 percent spike in price as a result of Russia’s invasion of Ukraine, all sectors in which the fund invests had negative returns in the first half.
Central banks have aggressively hiked interest rates this year to battle inflation, rising borrowing costs and decreasing business profit margins.
The Norwegian sovereign loses 174 billion dollars in the first half.
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