Norway’s Wealth Fund Suffers $40B Q1 Loss On Tech Slide

Norway’s massive sovereign wealth fund, officially known as the Government Pension Fund Global, reported a steep loss of 415 billion Norwegian kroner ($39.72 billion) in the first quarter of 2025. The primary reason behind this downturn was the sharp correction in global tech stocks, particularly in U.S. markets, where the fund has its largest exposure.

Despite the heavy loss, the fund still outperformed its benchmark slightly, returning -0.6%, which was 0.16 percentage points better than the benchmark index. The fund’s management attributed the negative return largely to the weak performance in the technology sector, which saw a steep selloff amid global market volatility.

Tech-Driven Decline and U.S. Exposure

The losses were concentrated mainly in the fund’s U.S. holdings, which include equities, real estate, and U.S. Treasuries. Over half of the fund’s total assets are invested in the United States, making it highly sensitive to shifts in the American market—especially the tech-heavy Nasdaq segment.

Norges Bank Investment Management (NBIM), which operates the fund, highlighted that the first quarter was marked by “significant market fluctuations,” echoing volatility levels not seen since the early days of the COVID-19 pandemic.

Long-Term View Remains Unchanged

CEO of Norway’s sovereign wealth fund stated that while the fund hasn’t aggressively bought stocks on a large scale, individual portfolio managers were free to make selective purchases if they found value. He added that the fund’s outlook on U.S. Treasuries remains unchanged, though overall global risk has notably increased.

Despite the turmoil, the fund’s CEO stated that they’ve made “very few portfolio changes” during the period. “April has been particularly volatile, a kind of volatility we haven’t experienced since the COVID crisis. But as long-term investors, we don’t react impulsively. We’ve actually seen opportunities to buy quality stocks at lower prices,” he said.

The fund remains well-diversified, with holdings across global equities, fixed income, renewable energy projects, and real estate assets. As one of the largest institutional investors globally, it continues to manage Norway’s oil and gas revenues for long-term national benefit, holding around 1.5% of all listed stocks worldwide.

While the first quarter posed challenges, NBIM reaffirmed its long-term approach and resilience, emphasizing that periods of market stress often open up windows for strategic buying.