MarketDeal24.Com – The Government Pension Fund of Norway, Norway’s sovereign wealth fund and the largest of any sovereign wealth funds of the world, has lost 1.33 trillion Norwegian crowns ($124 billion) so far this year as capital markets across the globe have registered seep declines due to the COVID-19 pandemic, it disclosed on Thursday.
The fund is now worth $930 billion, down from more than $1 trillion at the end of 2019. Its investment portfolio plunged by 16.2%, almost erasing the entire 20% gains pocketed last year, while its capital market portfolio – its main asset class – has lost 22.8% of its worth, it added.
On a separate development, Norges Bank, the central bank of Norway announced that it has appointed a new chief executive officer to oversee the affairs of the fund.
The much sought-after appointment of a new chief executive comes at a time ravaged by ongoing coronavirus pandemic on top of a general global economic slowdown which was further aggravated by US-China trade war.
On a note of future retirement, the outgoing CEO of the fund announced last October that would be stepping down after completing full 12 years on the top job.
During his time, the fund’s worth soared sharply due to bullish capital markets across the globe and a comfortable income from Norway’s oil and gas ventures.