Government Pension Fund Norway, Oslo, recorded a return of -11.7% in the first quarter as the coronavirus outbreak hit the fund's equity exposure.
The loss recorded by the fund, which is run in-house by Folketrygdfondet, was equivalent to 31.5 billion Norwegian kroner ($3 billion), said a news release.
The fund had 237.3 billion kroner in the three months ended March 31. The equity portfolio recorded a -20.6% return, and the return on fixed income was 2.5%. Comparative return figures for a year earlier were not available.
The assets of the Government Pension Fund Norway — which alongside the 10.3 trillion kroner Government Pension Fund Global, Oslo, is one of the country's two sovereign wealth funds — are invested 60% in equities and 40% in fixed income.
"The Norwegian market felt the effects of the coronavirus situation, sharp depreciation of the Norwegian krone and an unusually severe fall in oil prices, which dropped 66%. This clearly impacted the fund's performance," Kjetil Houg, CEO, said in the release.