The Oslo-based fund lost $74 billion in the first quarter, a 4.9% decline, according to a statement on Thursday.
The world’s biggest owner of publicly traded companies faced a worsening outlook already before Russia’s full-scale invasion of Ukraine dented the global markets. The fund, which returned 14.5% last year, is “still down but not much” so far this quarter, Deputy Chief Executive Officer Trond Grande said, adding uncertainty has increased “significantly through what has happened in Ukraine.”
“There are many who think of this as a very fundamental shift, in European politics in particular, but also in world politics,” Grande said in an interview after the report. “The fact that the stock market does not react more to such uncertainty seems to us to be a little surprising, without there being any clear explanation for it.”