Norway's Sovereign Wealth Fund Strategies Amid Market Turbulence

Norway's $1.7 trillion sovereign wealth fund will maintain its long-term investment approach despite experiencing significant losses. The government emphasizes risk diversification in unpredictable times and maintains ethical restrictions on investing in major weapon manufacturers. This strategy remains consistent amidst ongoing political discussions.

Norway's $1.7 trillion sovereign wealth fund, recognized as the largest globally, has resolved to stay its course by adhering to a proven long-term investment strategy, even during economic turbulence, according to a recent government strategy update.

Since the outset of 2025, the fund has witnessed a significant loss of approximately 1.1 trillion Norwegian crowns ($101.38 billion) due to the sharp fall in asset prices, as disclosed by the finance ministry's annual report to parliament. Finance Minister Jens Stoltenberg affirmed, "In times of heightened uncertainty, a broad risk diversification remains the most prudent strategy."

The government has opted not to alter existing ethical guidelines that prevent the fund from investing in leading global arms manufacturers, a topic that has sparked considerable political debate in Norway in recent months.

(With inputs from agencies.)