The Strategist

Norway's sovereign wealth fund loses $74B after Ukraine crisis and COVID

04/22/2022 - 03:52

According to a statement from Norway's national wealth fund, which controls $1.3 trillion in assets, the crisis in Ukraine and the quarantine imposed in China over the COVID-19 outbreak cost the fund $74 billion in the first quarter. This is the world's largest sovereign wealth fund's first quarterly deficit since 2020. billion due to events in Ukraine and a lockdown in China

Stocks, which account for the majority of the fund's holdings, had a negative return of minus 5.2 percent. Fixed-income investments produced a negative 4.8 percent return. Real estate assets increased by 4.1 percent, but they account for less than 3% of the fund's total investments, according to Bloomberg.

In a statement, Trond Grande, the fund's deputy CEO, admitted that "the first quarter was characterized by global turmoil, which also impacted the markets."

According to Reuters, the fund's portfolio included roughly 47 Russian firms' equities and government bonds worth NOK 25 billion ($2.83 billion) at the end of 2021.