3 American companies are behind a record loss for the Norwegian Wealth Fund… What is it?

“Meta Platforms”, “Amazon” and “Apple” caused the largest part of the fund’s record loss (Getty)

A record loss Norway’s sovereign wealth fund As a result of the first half of 2022, it amounted to 1.68 trillion Norwegian kroner, equivalent to 174 billion dollars, with stocks and bonds affected by concerns about… global recession and sharp increases in inflation.

The largest loss in the fund’s portfolio of shares came from 3 American companies: “Meta Platforms”, which owns “Facebook”, where the value of the fund’s investments decreased by 38 billion crowns, followed by “Amazon” with a decrease of 35 billion crowns, then “Apple” with a loss of 30 billion crowns. kr.

The fund is the largest in the worldthe return on his investments, amounting to 1.3 trillion dollars, reached -14.4% for the period from January to the end of June.

The drop, led by a 28% drop in the value of its tech holdings, was the largest for any 6-month period in the fund’s 26-year history, although it recovered some losses as markets turned positive in July and August.

“The market at that time was characterized by rising interest rates, high inflation and war in Europe,” Chief Executive Officer of the bank, which manages the fund, Nikolai Tangin, said in a statement.

The sovereign wealth fund, established in 1996, invests revenues from Norway’s oil and gas sector and owns stakes in more than 9,300 companies around the world.

The largest loss in percentage terms for the fund was in 2008 when the global financial crisis caused its value to fall by 23% for the whole year, although the size of the fund was significantly smaller at the time, and the total loss at that time was 633 billion crowns.

(Reuters)

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