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World’s Largest Sovereign-Wealth Fund Extends Losing Streak

The Norwegian capital, Oslo. The country’s sovereign-wealth fund on Friday reported another quarter of negative returns!

Norway’s sovereign-wealth fund recorded a third straight quarter of losses, returning a negative 4.4% in the three months through September, it said Friday.

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WSJ on losing shares of Norge’s Wealth Fund

As a major oil and gas producer, Norway is benefiting from high energy prices, but it is also contending with selloffs in the global stock and bond markets where it reinvests those earnings.

Norges Bank Investment Management, the arm of the central bank that oversees the fund, said the return equated to a loss of 449 billion kroner, or $44 billion.

It attributed the loss to rising interest rates, high inflation and war in Europe. Returns were negative for its stock, fixed-income and unlisted real-estate investments, the fund said.

The Norwegian fund is known as the oil fund because it invests the country’s oil revenues. It is the largest sovereign-wealth fund in the world with $1.2 trillion in assets.

As of Sept. 30, nearly 70% of the fund was invested in shares, nearly 30% in fixed income, about 3% in private real estate and 0.1% in private renewable-energy infrastructure

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