The world’s largest sovereign wealth fund has suffered a record loss in history. In six months, the fund has lost all the profits received over the past year. More than half of NBIM’s funds have been invested in stocks. The Norwegian State Pension Fund (NBIM) lost $174 billion, or almost 15% of its funds, in the first half of this year. The loss was the largest in history. The fund’s total assets are estimated at $1.2 trillion, writes RBC. The return on equity investments was minus 17%, with the biggest contributor to NBIM’s loss was technology stocks, which fell 28%. Energy was the only sector of the stock market where investments increased. Investments in energy companies provided a return of 13%. Securities from Europe, in which the fund invested, fell in price by 19.3%, American – by 17.6%, Asian – by 14.3%. The only investments that showed a positive return of 7.1% were investments in real estate, but their share was too small (only 3%). As of the end of the first half of the year, 68.5% of the fund’s funds were invested in equities, 28.3% in fixed income instruments, 3% in real estate, and 0.1% in renewable energy infrastructure projects. “We invest for the long term, so we have to put up with such fluctuations,” said Nicholas Tangen, CEO of the fund. However, he called the situation unusual, when investments in both stocks and bonds showed negative returns. The Norwegian State Pension Fund was established in 1996 to invest the country’s oil and gas revenues in foreign assets. Last year, the fund began investing in renewable energy infrastructure projects for the first time. Source: FXPro

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