Market Fluctuations Lead to Significant Losses

The world's largest sovereign wealth fund, managed by Norges Bank Investment Management, has reported a stark negative return of -0.6% in the first quarter of fiscal 2025, translating to a colossal loss of 415 billion kroner ($40 billion).

Tech Sector's Impact on Equity Investments

"This quarter has been marked by significant market volatility. Our equity investments suffered, primarily due to downturns in the tech sector," 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 but saw a decrease in market value by 1.21 billion kroner by March's end.

Portfolio Composition Highlights

Aside from equities, the fund's composition included 27.7% in fixed income, 1.9% in unlisted real estate, and a minor 0.4% in renewable energy infrastructure, showcasing a diversified yet challenging quarter for the fund.