World’s largest Norwegian fund loses $30 billion — CNBC

Norway’s sovereign wealth fund, the world’s largest, recorded an accounting loss of 278 billion Norwegian kroner, or $29.7 billion, in the third quarter. The result was affected by weaker performance of investments in debt securities amid rising interest rates, CNBC reports.

Quarterly result

Norges Bank Investment Management, which manages the fund with a $2.3 trillion portfolio, reported a negative accounting result for the reporting period. The loss amounted to 278 billion kroner, equivalent to about $29.7 billion.

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Impact of bonds

The fund’s fixed-income investments posted a negative return of 3.5%. NBIM described this figure as one of the key factors behind the overall decline.

NBIM Deputy Chief Executive Officer Trond Grande said the fund’s overall return was close to zero but ended the quarter with a slight negative result. According to him, rising interest rates weakened the performance of the fund’s investments in fixed-income instruments.