Norway's Wealth Fund Reports Significant Loss

The world's largest sovereign wealth fund, managed by Norges Bank Investment Management, has announced a stark negative return of -0.6% for the first quarter of fiscal 2025. This translates to a substantial loss of 415 billion kroner, or approximately $40 billion, marking a challenging period for the fund.

Market Fluctuations and Tech Sector Impact

"The quarter has been characterized by significant market fluctuations, with our equity investments particularly affected. The tech sector was a major contributor to the negative returns," stated Nicolai Tangen, the fund's CEO. The equity investments, which constitute 70% of the fund's portfolio, were valued at 12.96 billion kroner, witnessing a decrease in market value by 1.21 billion kroner by the end of March.

Portfolio Composition

Aside from equities, the fund's composition included fixed income at 27.7%, unlisted real estate at 1.9%, and renewable energy infrastructure making up 0.4%. This diversified portfolio, however, could not shield the fund from the quarter's market volatilities.