The Norwegian sovereign wealth fund – which is worth 1.7 trillion dollars – has seized its largest loss in a year and a half, in a period that witnessed severe fluctuations in global markets, under the pressure of the decline in the value of technology companies.
American stocks have recorded less than their global counterparts, amid fears that American commercial policy and customs duties will affect economic growth, however, CEO Nikolai Tangen said that the fund will increase its investments in American stocks, according to the authorization set by the Norwegian Ministry of Finance.
“The large American companies are wonderful and long -term investments, so we are very pleased to invest in them,” Bloomberg quoted Tangen as saying today.
loss
The Fund announced – in a statement – a loss of 0.6% in its investments, equivalent to 40 billion dollars, in the first three months of the year, and this represents the largest decrease since the third quarter in 2023 for the largest owner of the companies listed in the world, and the fund lost 1.6% of its investments in the stocks with the declines of the technology sector, while describing it as a quarter “was affected by great market fluctuations.”
Fixed income investments increased 1.6%, which helped the fund to exceed its reference index by 0.16%.
The Fund focuses heavily on the technology sector, and among its largest investments is Apple, Microsoft, Enveda, Elbett, Amazon and Mita, and it has shares in Tesla.
These investments have been achieved by large returns, including 13% last year, and the CEO, Trond Grande, told reporters that the fund reduces the percentage of these shares from the Fund’s portfolio for nearly 18 months.
Customs duties
The first quarter of the last quarter profits were not reflected, followed by the sharp increase in customs duties imposed by US President Donald Trump in early April.
“We are about to enter into an inflationary position, it is a clear result of the height of customs duties, and it is very negative on the markets,” Tanggen said.
The Norwegian government deposited 78 billion kronor (7.5 billion dollars) in the fund during the quarter.
The Fund has shares in more than 8,600 companies around the world, and Norwegian Finance Minister Yannis Stoltenberg recently announced that it will seek to reduce this number by selling many small companies in emerging markets, and given the volume of the fund, the application of these changes takes time.
