Norway’s sovereign wealth fund was developed in the 1990 s to invest the surplus profits of the nation’s oil and gas sector.
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Norway’s sovereign wealth fund on Tuesday reported a record loss of 1.64 trillion Norwegian kroner ($164 billion) for the entire of 2022, mentioning “very unusual” market conditions.
The so-called Government Pension Fund Global, amongst the world’s biggest financiers, returned -141% in 2015, which it stated was 0.88 portion points much better than the return on its benchmark index.
“The market was impacted by war in Europe, high inflation, and rising interest rates. This negatively impacted both the equity market and bond market at the same time, which is very unusual,” Norges Bank Investment Management CEO Nicolai Tangen stated in a declaration.
“All the sectors in the equity market had negative returns, with the exception of energy,” Tangen stated.
The fund’s previous biggest loss was 633 billion kroner in 2008 amidst the worldwide monetary crisis.
The $1.3 trillion fund was developed in the 1990 s to invest the surplus profits of Norway’s oil and gas sector. To date, the fund has actually bought more than 9,300 business in 70 nations all over the world.
Norway’s huge North Sea oil and gas reserves are the bedrock of the fund’s wealth. Indeed, the nation’s escalating nonrenewable fuel source profits amidst Russia’s war in Ukraine have actually triggered an impassioned dispute about worldwide justice.
Opposition legislators, popular economic experts in Norway, and even titans of the nation’s energy market have actually contacted the federal government to set an example to the world by pumping its bumper petroleum earnings into a brand-new worldwide uniformity fund.
Norway’s Foreign Ministry has stated it is totally familiar with the obligation that includes its energy resources.
