Norway Wealth Fund Posts Largest Loss in Six Quarters

Norway's $1.7 trillion sovereign wealth fund, the world's largest, reported a first-quarter loss of approximately $40 billion, its largest quarterly decline in six quarters. The loss was mainly due to a significant drop in the value of leading technology companies such as Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta, which form a core part of the fund's holdings. Equity investments fell by 1.6%, while fixed-income assets gained 1.6%, resulting in an overall portfolio decline of 0.6%, which outperformed the fund's benchmark. Over half the fund's assets are invested in the US, with substantial allocations in Europe and other regions. Fund leaders highlighted ongoing market uncertainty and shifting attitudes toward US assets globally but stated they are not making major portfolio changes, instead remaining alert to macroeconomic risks and possible market fragmentation between trading blocs. Despite historically strong returns from tech investments, recent volatility exposes the risks of heavy sector concentration.