THRICE: Norway SWF Gets Hit in the Third Quarter of 2022
Posted on 10/28/2022
This is the third quarter where the Norwegian sovereign wealth fund was hit with negative returns.
In the third quarter of 2022, Norway’s Government Pension Fund Global returned -4.4 percent, equivalent to -449 billion kroner. The return on the fund’s equity investments was -4.8 percent. The return on the investments in fixed income was -3.9 percent, whereas the investments in unlisted real estate returned -1.1 percent. Norges Bank Investment Management (NBIM) oversees Norway Government Pension Fund Global.
“The third quarter has been characterised by rising interest rates, high inflation, and war in Europe. This has also affected the markets. The return was negative for equities, fixed income, and unlisted real estate”, says Deputy CEO at Norges Bank Investment Management Trond Grande.
Furthermore, the krone depreciated somewhat against several major currencies in course of the quarter. Currency movements contributed to an increase in the fund’s value of 702 billion kroner. In the third quarter, inflow into the fund amounted to 306 billion kroner.
The fund had a value of 12,216 billion kroner as at September 30, 2022. 68.3 percent of the sovereign fund was invested in equities, 28.5 percent in fixed income, 3.1 percent in unlisted real estate, and 0.1 percent in unlisted renewable energy infrastructure.
