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Norges Bank, Norwegian sovereign wealth fund, burns 174 billion dollars in the first half of 2022

The world's largest sovereign wealth fund suffered its largest nominal loss in a half-year as it almost entirely erased 2021 gains

Norges Bank, Norwegian sovereign wealth fund, burns 174 billion dollars in the first half of 2022

Black semester the one just concluded for the Norwegian sovereign wealth fund, handled by Norges Bank, the Norwegian Central Bank, which recorded a loss of 174 billion dollars in the first half of 2022. This was communicated by the Norwegian oil fund – which owns the equivalent of 1,5% of all listed companies in the world – which suffered its largest nominal loss in a half-year by almost entirely erasing the gains it posted in 2021. According to reports communique, the $1200 trillion fund recorded a negative yield of 14,4% in the January-June period that burned 174 billion dollars. All sectors in which the fund invests suffered losses with the exception of energy. Last year the fund had a positive return of 14,5%.

“The market has been characterized by rising interest rates, high inflation and war in Europe,” said the chief executive Nicolai Tangen in a note, adding that “tech stocks performed particularly poorly with a return of less than 28%”.

The main holdings in Italy of the Norwegian Sovereign Fund

Born 20 years ago to reinvest the proceeds of the flourishing Norwegian oil industry, the Norges Bank Fund has become a veritable gold mine, thanks to the diversification of spending and the idea that spending was used to balance citizens' public debt and ensure a rosy future for future generations. To date, it boasts stakes in over 9 companies: 1,5% of those listed worldwide.

Currently, the fund's market yield decreased by SEK 1.680 trillion to SEK 11.657 billion in the first six months of the year. Money distributed all over the world, including Italy. From A2a to doValue (in alphabetical order), they are 151 listed companies which have seen the arrival (or intensification) of the Norwegian Fund: from energy to banks, from publishing to football to pharmaceuticals for a value exceeding 8 billion.

Small shares, branched out in all sectors. From utilities like A2a, Saipem, Snam, Hera, Erg, Terna but also Amplifon e Diasorin. The Norwegians have bought themselves small slices of all sectors of the Piazza Affari price list. Energy, with 2,44% of shares Eni, banking, with 1,31% in Intesa Sanpaolo. Big fish and small fish: Rest, Mondadori, Leonardo, stellantis, Post Italian, CNH e Cairo communications. 3,62% of Living In and, so as not to miss anything, 0,37% of the Juventus.

The banking sector is the one most bought by the Norwegian fund, which has invested not only in big players such as Unicredit, General Bank (1,11%), Popular of Sondrio (1,67%) and bpm with 1,24%, but also in the BFF Bank with 1,57% or, say, in the Bank of Desio and Brianza, with 0,02%.

The Nbim owns stakes in many Italian luxury brands: Brunello Cucinelli, Ferragamo e Moncler (1,33%). More than 14 million in Falck Renewables, 2,04% in Oviesse, and then Ferrari (0,60%), nexi (1,30%) and 2,32% of Prysmian.

Shares that enrich the assets of the sovereign wealth fund born from oil, which however no longer invests in oil, which manages the pensions of Norwegians for future generations and which by now no longer excludes any sector. But this year the losses made themselves felt.

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