In the statement made by the Norwegian Wealth Fund, it was stated that the investment loss of the fund in 2022 was 14.1 percent, which corresponds to 1 trillion 637 billion Norwegian crowns ($ 164.4 billion).
It was noteworthy that the investment loss in question was the fund’s biggest loss since the 2008 financial crisis. The loss of the fund in 2008 was recorded as 633 billion Norwegian crowns.
Head of Investment Management of the Fund, Nicolai Tangen, stated that the markets were affected by the Russia-Ukraine war, high inflation and rising interest rates.
“This has negatively impacted both the stock market and the bond market at the same time,” Tangen said. This was a very unusual situation. All sectors in the equity market, with the exception of energy, had negative returns.” used the phrase.
The Norwegian Wealth Fund has been investing in foreign stocks, bonds and real estate markets with the return of the country’s oil and natural gas production since 1990. The Norwegian government can use very little of the fund’s proceeds, with the remainder being saved for future generations.
While the fund has investments in 70 countries and more than 9,338 companies outside of Norway, it holds 1.3 percent of the shares in the world stock markets. The fund has been investing heavily in renewable energy projects in recent years.
The market capitalization of the fund was 12 trillion 429 billion Norwegian crowns ($ 1 trillion 240 billion) as of December 31, 2022.