World’s Largest Sovereign Wealth Fund, Norway’s Wealth Fund, Records Significant Losses in Q3. Norway’s sovereign wealth fund, valued at $1.4 trillion and recognized as the world’s largest, reported losses of 2.1% in the third quarter.
The Norwegian Government Pension Fund Global attributed the losses, totalling 374 billion kroner ($34 billion), to financial market uncertainty. While the fixed-income portfolio was down 2.2%, the fund’s total return managed to surpass its benchmark index by 0.17 percentage points.
The fund also experienced quarterly losses of 3.3% on its investments in unlisted real estate and 2.4% on its renewable energy infrastructure investments.
These losses were primarily attributed to underperformance in technology, industrial, and consumer discretionary sectors.
Established in the 1990s to invest surplus revenues from Norway’s oil and gas sector, the fund holds a stake in approximately 1.5% of global equities. It has investments in over 9,200 companies across 70 countries.
In December 2022, it briefly lost its status as the world’s largest sovereign wealth fund to China Investment Corporation, which managed assets worth $1.35 trillion at the time.
