Norway’s Wealth Fund Stays Steady Amid Market Volatility

Norway's $1.7 trillion sovereign wealth fund remains committed to risk diversification amid market turbulence, suffered losses of $101.38 billion. Despite volatility due to U.S. tariffs, the fund still aims to reduce portfolio complexity while maintaining long-term strategies, as announced by Finance Minister Jens Stoltenberg.

Norway's colossal $1.7 trillion sovereign wealth fund is maintaining its broad risk diversification strategy amid turbulent markets, despite suffering significant financial losses, the government announced Thursday.

Amid market volatility driven by U.S. tariff announcements, the fund, which holds 1.5% of all globally listed stocks, reported a loss of around 1.1 trillion Norwegian crowns ($101.38 billion) this year, as outlined in a finance ministry's filing to parliament.

Finance Minister Jens Stoltenberg emphasized the importance of sticking to established strategies and avoiding hasty decisions, while the fund moves to simplify management through cutting smaller firms from its portfolio. Despite challenges, the fund will continue its long-term investment approach with unchanged ethics rules.

(With inputs from agencies.)