The Norwegian Wealth Fund, the largest in the world, announced that it has incurred a loss of 449 billion Norwegian churches (43. 5 billion dollars) in the third quarter of the year 2022, as it was affected by the high interest rates, inflation and war in Europe. He provided information about the fund, which manages 1.15 trillion dollars in assets, showing that its investment returns were negative 4.4% in the third quarter, which was 0.14 percentage points worse than the return on the fund index, according to Reuters.
The Norwegian sovereign wealth fund suffered a loss of 1.68 trillion Norwegian crowns (174 billion dollars) in the first half of the year, as equities and bonds were being hurt by concerns about a worldwide recession and the spread of price inflation. The fund stated that the loss was caused by Europe’s war, high interest rates, and excessive inflation. While the return on the stocks and fixed income instruments was negative.
As of September 30, the fund invests roughly 70% of its assets in shares, 30% in fixed income instruments, 3% in private real estate, and 0% in private energy infrastructure.
The Fund was founded in 1996, invests earnings from the Norwegian oil and gas industry, and owns 1.3% of all publicly traded shares in addition to holding investments in more than 9300 businesses globally.
The third quarter saw a $43.5 billion loss for the Norwegian wealth fund.
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