Norway’s welfare fund announced its third quarter loss | Job Binary


OSLO, Oct 28 (Reuters) – Norway’s $1.15 trillion sovereign wealth fund lost 449 billion kroner ($43.47 billion) in the third quarter of 2022 on Friday, its third quarterly loss hit by rising interest rates, high inflation. The war in Ukraine has affected the markets.

The world’s leading sovereign wealth fund reported a negative return on investment of 4.4% between July and September, which was 0.14 percentage points higher than the return of the fund’s benchmark index.

The fund last recorded three negative quarters during the 2008-2009 global financial crisis.

Trond Grande, deputy CEO of Norges Bank Investment Management, which manages the fund, said in a statement that returns were negative for equities, fixed income and unlisted real estate.

“The third quarter was characterized by rising interest rates, high inflation and war in Europe. This also affected the markets,” Grande said.

At the end of September, the fund invested 68.3% of its value in stocks, compared with 68.5% three months earlier.

Fixed income was 28.5% of value versus 28.3% three months ago, with 3.1% in unlisted real estate versus 3.0% three months ago and 0 in unlisted renewable energy infrastructure. .1%, unchanged compared to the previous one.

Founded in 1996, the sovereign wealth fund invests the Norwegian state’s revenues from oil and gas production and holds 1.3% of all listed shares in more than 9,300 companies worldwide.

Reuters graphic

(This story has been refiled to correct the fund size in the first paragraph to $1.15 trillion)

($1 = 10.3300 Norwegian kroner)

Reporting by Viktoria Klesti, editing by Gwladys Fouché, Terje Solsvik and Tomasz Janowski

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