Norway Wealth Fund Posts $30 Billion Q3 Loss as Bond Rout Cuts Returns

3 articles · Updated · CNBC · Oct 22

278 billion kroner — about $29.7 billion — was wiped from Norway's sovereign wealth fund in the third quarter, leaving the $2.3 trillion portfolio slightly negative overall.
Rising interest rates drove a global bond selloff, and the fund's fixed-income holdings returned minus 3.5%, the main drag on performance.
Government debt was especially exposed: fixed income makes up just over a quarter of assets, with 70% of that bond portfolio in sovereign bonds across 51 countries.
Equities, which account for 72% of the fund, returned 0.5%; energy stocks led while rate-sensitive utilities and real estate lagged.
The setback follows a record first half, when the fund returned 12.95% and nearly $185 billion, after CEO Nicolai Tangen warned summer gains were unlikely to continue.