Norway’s wealth fund records biggest half-year deficit| MENAFN.COM

Tuesday, 04 October 2022 07:29 GMT

Norway’s wealth fund records biggest half-year deficit


(MENAFN) Norway's sovereign wealth fund, the world's largest, recorded its largest ever deficit of 1.68 trillion Norwegian crowns (USD174 billion) in the first six months of the year, in agreement with the Norges Bank Investment Management (NBIM).

The Oslo-based fund returned to less than 14.4 percent from the first half, based on NBIM, which mentioned rate increases, high inflation and Russia’s war on Ukraine.

"The market has been characterized by rising interest rates, high inflation, and war in Europe," on the words of Nicolai Tangen, the boss of NBIM.

The fund dropped 17 percent in equity investments, 13.3 percent in unlisted renewable energy infrastructure investments and 9.3 percent in fixed-income investments.

The return was 1.14 percentage points higher than the return on the benchmark index, it added.
"Technology stocks have done particularly poorly with a return of -28 percent,” in accord with Tangen.

The fund's market value reached 11.6 trillion kroner (USD1.3 trillion) at the end of the first half of this year.

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