Norway’s sovereign wealth fund, managed by Norges Bank Investment Management, recorded a loss of about 29.7 billion US dollars in the third quarter of 2026, as rising interest rates weighed on its bond holdings. The fund manages roughly 2,300 billion US dollars in assets.
Bonds drag on returns
The fixed income portfolio returned minus 3.5 percent over the quarter. Fixed income accounts for slightly over a quarter of the fund’s total portfolio, with about 70 percent of bond investments held in government securities. The fund holds 1,664 debt securities from 51 countries.
“The fund’s return was close to zero, ending slightly negative, as higher interest rates led to weaker results for our fixed income investments,” said Trond Grande, deputy chief executive of NBIM. Global bond markets had a difficult quarter as government bond yields rose amid concerns over inflation, public debt levels and the prospect of further rate hikes by major central banks, including the US Federal Reserve. Last month NBIM said it intends to reduce its holdings of US Treasury securities as part of a broader plan to cut exposure to government debt.
Equities nearly flat
Equities, which make up about 72 percent of the fund’s investments, returned 0.5 percent in the quarter. The S&P 500 rose 2 percent in July-September, the Nasdaq Composite gained 2.2 percent, while the Dow Jones Industrial Average fell 1.9 percent.
Energy companies performed best, supported by higher oil prices amid the US-Iran conflict. Utilities and real estate, sensitive to interest rates, were hit harder. Real estate returned 0.4 percent and renewable energy infrastructure returned 7.5 percent in the quarter.
The fund holds stakes in 7,100 companies, equivalent to about 1.5 percent of all globally listed companies, including a 65.4 billion US dollar stake in Nvidia. The quarterly loss follows a record first half, when the fund posted a return of 12.95 percent and a profit of about 185 billion US dollars.
Related: Norway's wealth fund posts $30 billion loss on bond sell-off
Source: Norges Bank Investment Management
