Norges Bank, the Norwegian sovereign wealth fund, lost $2.2 billion in Italy, more than in the rest of the world.

The share of the Norwegian fund amounts to 2.2 billion, Norges Bank Investment Managementburned in Italy in 2022. This is 18% less than in 2021, 9.7 billion dollars against 11.8 billion the previous year.

Effect of radiation

In total, the Norwegian fund lost around $164 billion in 2022, an overall loss of 14%. Why was the Italian drop bigger than the global drop? In addition to the poor performance of Piazza Affari, there are the many… the radiation, that affected the list, from Atlantia a Exor (now listed only in the Netherlands). In fact, Norges Bank Im’s stake in Piazza Affari fell from 149 to 144.

On the podium of holdings, consistent with the market capitalization of the Ftse Mib, we find Enel (of which the fund holds 2.17%, equal to 1.18 billion), Eni (1.56% to 790 million) and Unicredit with 728 million, equal to 2.65% of Gae Aulenti. Intesa Sanpaolo and Generali follow, with 1.59% and 1.75% respectively, or 671 million euros and 493 million euros.

Only one action left for Juventus

Two transactions in the Exor galaxy are worth mentioning: the takeover of the newly listed company Iveco (ipo in January 2022), in which the fund came to hold the… 6,42% (132 millions)making it Milan’s largest shareholder; and the total exit of Juventus (from 3.7 million from 2021), except for a microscopic share of 3 Norwegian kronerwhich, on the December stock exchange, corresponded to a single share of the HCL football club. A gesture which is probably explained by the possibility for Norges Bank to participate in the team’s shareholders’ meeting with the right to speak.

For Norges Bank, the worst year since 2008

For the Norwegian fund, the loss of 164 billion in 2022 was the worst since 2008the year the great global financial crisis began. “The market was impacted by the war in Europe, inflation, rising interest rates,” said Nicolai Tangenand it affected the stock and bond markets at the same time, which is very unusual.”

Why the Norwegian fund is important

The Norwegian fund is a litmus test of market performance. It invests within a strict mandate imposed by the European Commission. Ministry of Financeand has only limited leeway to try to beat the benchmark it is benchmarked to, which has happened in eight of the last ten years.

In general, Norges Bank Im invests in the real estate sector. global equities in proportion to their weight in the respective national benchmarks, and therefore measuring their performance means having a detailed overview of what happened in the markets during the year. ()