World’s largest sovereign wealth fund announces record loss — RT Business News

Norway’s trillion-dollar public pension fund, NBIM, suffered the biggest loss in its history in the first half of the year, the Financial Times reported on Wednesday, citing an official statement.

According to the report, the fund posted a loss of $174 billion, or 14.4%. NBIM’s overall value is estimated at $1.2 trillion, making it the largest sovereign wealth fund in the world.

It owns the equivalent of around 1.5% of all listed companies on the planet and saw inflows of around $36.8 billion in the first half of 2022. However, currency and equity movements have weighed on its value. The fund’s equity portfolio was particularly hard hit, falling 17%, with the largest losses coming from NBIM’s investments in Meta, Facebook’s parent company. Fixed income investments were down 9.3% and technology stocks in the fund’s portfolio fell 28%. Investments in infrastructure projects in the renewable energy sector resulted in a loss of 13.3%. The only sector in which the fund made significant profits was energy, with those investments returning 13%.

Despite the losses, the fund’s CEO, Nikolai Tangen, is optimistic about its future.

« The fund is now so big that the sums are becoming very large… But we are a long-term investor, so we have to tolerate these kinds of fluctuations. What was unusual this time was that we lost money in both stocks and bonds,“, he said at a press conference.

Still, Tangen warned investors to “difficult moments » ahead.

« The markets aren’t going down in a straight line and I’m afraid we’ll be in for some tough times for an extended period of time. There’s a risk that we haven’t seen the worst yethe said in an interview with the Financial Times.

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