Norway Wealth Fund Posts Record $164-B Loss

Norway's wealth fund, one of the world's largest investors, posted a record loss of 1.64 trillion crowns ($164.4 billion) for 2022, bringing to an end a three-year run of soaring profits as stocks and bonds were hit by the Ukraine war and inflation, Victoria Klesty reported for Reuters.

Photo Insert: The fund’s loss is 14%, much of it caused by worldwide inflation, the Russian invasion of Ukraine, and financial retreats among the 9,000 companies where the wealth fund has investments.

The fund’s loss is 14%, much of it caused by worldwide inflation, the Russian invasion of Ukraine, and financial retreats among the 9,000 companies where the wealth fund has investments.

Reporting for Bloomberg, Kai Lundgren said Norway’s $1.3 trillion sovereign wealth fund reported its biggest loss since the 2008 financial crisis after markets were pummeled by faster inflation, higher credit costs, and the fallout from the war in Ukraine.

Moreover, strict rules cover the investment of the fund, with Norwegians seeing the value of investments 24/7 and the earnings from the fund go to social and economic programs benefiting low earners.

The fund that manages Norway’s fossil wealth lost 14.1% in 2022, equivalent to about $164 billion, according to a statement on Tuesday.

It’s the world’s biggest single owner of equities, and its returns are highly dependent on market movements.

The $1.3 trillion fund lost 15% on stocks and 12% on bonds, CEO Nicolai Tangen revealed, but he said it is normal for such a huge wealth fund to absorb losses and stressed he beat Elon Musk by losing more money.

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