Norway’s Government Pension Fund Global’s investment manager led by CEO Nicolai Tangen has reported a negative return of -14.4% equivalent to $174 bn (€171 bn) amid a backdrop of rising interest rates, high inflation and war in Europe.
However, the good news is that unlisted real estate for Norges Bank Investment Management (NBIM) returned a positive 7.1%, trouncing other asset classes such as equities (-17%), and unlisted renewable energy (-13.3%).
NBIM manages $1.3 trn of assets for the country's sovereign wealth fund.
Some 68.5% of the fund is invested in equities, 28.3% in fixed income, but just 3% in unlisted real estate, and 0.1% in unlisted renewable energy infrastructure.
Tangen said technology stocks had done particularly poorly, down 28%.
All sectors have seen negative returns, with the exception of energy.
‘In the first half of the year, the energy sector returned 13%. We have seen sharp price increases for oil, gas, and refined products’, he explained.
