Norway’s sovereign wealth fund, managed by Norges Bank Investment Management, recorded a loss of 278 billion kroner ($29.7 billion) in the third quarter. The fund, valued at about $2.3 trillion, is the largest in the world.
Fixed income investments fell 3.5%, reflecting the sharp decline in government bonds. Equities, which account for 72% of the portfolio, delivered a modest 0.5% gain. Real estate returned 0.4%, while renewable energy infrastructure rose 7.5%.
The fund’s biggest equity holdings include Nvidia valued at $65.4 billion, along with Apple, Alphabet, Microsoft, Taiwan Semiconductor Manufacturing Company and Amazon. Energy sector investments performed strongly as oil prices surged during geopolitical tensions.
Global markets showed mixed results. The S&P 500 gained 2.03%, the Nasdaq rose 2.2%, while the Dow Jones slipped 1.9%. Rising bond yields weighed heavily on utilities and real estate.
Chief Executive Nicolai Tangen cautioned investors not to expect the exceptional returns seen earlier this year, when the fund posted a record profit of $185 billion with a gain of 12.95%. NBIM also signaled plans to reduce exposure to United States Treasuries and government debt.
The quarter’s results highlight the challenges of managing the world’s largest wealth fund in a volatile global environment.
