Norway's sovereign wealth fund records 2.1 percent loss in Q3 due to market volatility
Date
10/26/2023 4:18:06 AM
(MENAFN) The world's largest sovereign wealth fund, Norway's USD1.4 trillion Norwegian Government Pension Fund Global, reported a loss of 2.1 percent in the third quarter, attributing it to financial market volatility.
The fund disclosed a loss of 374 billion kroner (approximately USD34 billion) during this three-month period. Its fixed-income portfolio also decreased by 2.2 percent. Nevertheless, the fund's overall return surpassed its benchmark index by 0.17 percentage points.
In addition to these losses, the fund reported a quarterly decrease of 3.3 percent in its investments in unlisted real estate and a 2.4 percent loss on its investments in renewable energy infrastructure during the third quarter.
“The stock market saw a weaker quarter compared to the two previous quarters,” vice managing director Trond Grande declared. “It was particularly the tech, industrials and consumer discretionary sectors which contributed negatively to the return.”
Formed in the 1990s to manage the excess earnings from Norway's oil and gas industry, the fund holds a stake of roughly 1.5 percent in global equities. It has made investments in over 9,200 companies spanning 70 countries across the globe.
Notably, in December 2022, the Norwegian fund temporarily relinquished its position as the world's largest sovereign wealth fund to China Investment Corporation, which, at that point in time, managed assets valued at USD1.35 trillion.
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