Norway's gigantic sovereign wealth fund loses a record $164 billion, citing 'very unusual' year

Norway's sovereign wealthiness money connected Tuesday reported a grounds nonaccomplishment of 1.64 trillion Norwegian kroner ($164 billion) for the full of 2022, citing "very unusual" marketplace conditions.

The alleged Government Pension Fund Global, among the world's largest investors, returned -14.1% past year, which it said was 0.88 percent points amended than the instrumentality on its benchmark index.

"The marketplace was impacted by warfare successful Europe, precocious inflation, and rising involvement rates. This negatively impacted some the equity marketplace and enslaved marketplace astatine the aforesaid time, which is precise unusual," Norges Bank Investment Management CEO Nicolai Tangen said successful a statement.

"All the sectors successful the equity marketplace had antagonistic returns, with the objection of energy," Tangen said.

The fund's erstwhile largest nonaccomplishment was 633 cardinal kroner successful 2008 amid the planetary fiscal crisis.

The $1.3 trillion money was established successful the 1990s to put the surplus revenues of Norway's lipid and state sector. To date, the money has invested successful much than 9,300 companies successful 70 countries astir the world.

Norway's immense North Sea lipid and state reserves are the bedrock of the fund's wealth. Indeed, the country's skyrocketing fossil substance revenues amid Russia's warfare successful Ukraine person prompted an impassioned statement astir planetary justice.

Opposition lawmakers, prominent economists in Norway, and even titans of the country's vigor industry person called connected the authorities to acceptable an illustration to the satellite by pumping its bumper petroleum profits into a caller planetary solidarity fund.

Norway's Foreign Ministry has said it is afloat alert of the work that comes with its vigor resources.