Even the best and biggest investors suffer the consequences of market crises like the one that happened in 2022. Norwegian Government Global Pension Fundthe world’s largest sovereign wealth fund, reported a loss in the first half of 2022 in the amount of a record 1.68 trillion NOK (170.41 billion euros).) as a result of the impact of inflation and higher rates, as well as the war in Ukraine and a sharp drop in the stock market of the technology sector.
Thus, in the first half of the year, the return on investment of the Norwegian fund decreased by 14.4%, while the share portfolio fell by 17.3%. company, which accounted for 68.5% of the positions of the Norwegian investment company as of June 30. As of June 30, the fund’s assets amounted to 11.6 billion crowns, about 1.2 billion euros. at the current rate.
You have a fixed income portfolio on your side, representing 28.3% of the fund’s exposure, offered a negative return of 9.3% during the semester, while unrecorded real estate investments, representing 3% of the portfolio, reported a positive return of 7.1%.
This semester, investments in the technology sector reported a loss of 414,000 million crowns (41,994 million euros), led by losses in absolute numbers due to exposure to the fund from companies such as Meta, Amazon, Apple and Microsoft. scandinavian background He clarified that between April and June, the return on investment was -10%, which would have meant a loss of 1.02 billion crowns (104,280 million euros).
“The market was characterized by rising interest rates, high inflation and war in Europe,” said the CEO of Norges Bank Investment Management (NBIM). Nicholas Tangenwho noted that investment in tech stocks “performed especially poorly” with a -28% return in a context where all sectors had negative returns except energy.
In this regard, the head of the executive branch specified that in the first half of the year the energy sector returned 13% after a strong rise in prices for oil, gas and refined products. At the end of the semester, a Norwegian fund that invests its gas and oil earnings abroad and is managed NBIMthe structure attached to the Norwegian central bank had a value of 11.657 billion crowns (1.18 billion euros).
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