Norway’s $2.2 Trillion Sovereign Wealth Fund Posts a 1.9% Loss in Q1 2026
Its first quarterly decline in four, as the Iran war tanks US tech stocks.
April 23, 2026 – 9:36 am
The world’s largest sovereign wealth fund lost NOK636 billion ($68 billion) in investment returns in the first quarter, driven by the equity slide among large US technology companies. The S&P 500 posted its deepest quarterly decline since 2022. The fund marginally outperformed its benchmark.
Norges Bank Investment Management (NBIM), which manages Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund at approximately $2.2 trillion, reported a negative return of 1.9% for the first quarter of 2026 on Thursday, its first quarterly loss in four quarters.
The fund lost NOK636 billion (approximately $68 billion) in investment returns during the January–March period. It beat its benchmark index by 0.01 percentage point. The total reported decline in fund value was NOK1.27 trillion ($137 billion), a larger figure that includes the effect of currency movements: as the Norwegian krone strengthened against major currencies during the quarter, the value of the fund’s predominantly foreign-currency holdings declined further in krone terms when translated back.
"The result reflects a quarter with challenging market conditions," deputy CEO Trond Grande said in a statement. > "We saw limited impact on fixed income and real estate, but it was the decline in equities, especially among large US technology companies, that determined the outcome."
The fund holds approximately half its assets in US markets and has major positions in technology companies including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla.
US tech megacaps sold off sharply during Q1 2026, leaving the S&P 500 with its deepest quarterly decline since 2022, a move driven primarily by the geopolitical shock of the Iran war.
The US and Israel launched coordinated strikes against Iran in late February 2026, triggering a sustained market selloff that hit high-multiple growth stocks hardest. Technology companies, which trade at elevated price-to-earnings multiples and are sensitive to risk-off sentiment, rising rates, and uncertainty about the economic outlook—bore the brunt. Although markets have since partially recovered, the Q1 close locked in losses for the period.
The quarter marks the second time in consecutive years that large US technology companies have been the primary driver of fund performance.