Norway: sovereign fund loses 32 billion in third quarter, destructive return of two.1% | EUROtoday

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Norway’s sovereign wealth fund, the biggest on this planet, misplaced 374 billion crowns (32 billion euros) within the third quarter of 2023, because of the destructive return of all its asset courses. This was introduced by the Norwegian Central Bank answerable for its administration. In the three months, the fund recorded a destructive return of two.1%, standing at 14,801 billion crowns (1,253 billion euros) on the finish of September.

“The stock market experienced a weaker quarter than the previous two quarters,” commented the fund’s deputy supervisor, Trond Grande. “It was above all the technology, industrial and discretionary consumption sectors (non-essential goods such as luxury and automobiles, ed.) that contributed negatively to performance,” Grande noticed.

Equity investments, which characterize 70.6% of the portfolio, recorded a destructive return of two.1% within the quarter. With shares in over 9,000 firms, the fund owns on common 1.5% of all listed teams on this planet. Bond investments (27.1% of the portfolio) additionally misplaced 2.2% and actual property investments (2.2% of the portfolio) misplaced 3.3%.

Intended to faucet the Norwegian state’s oil and gasoline revenues to finance future expenditures of the beneficiant welfare state, the fund earned 1,501 billion crowns within the first half of the yr due to enhancing inventory markets.

(Il Sole 24 Ore Radiocor Plus)