Norway’s sovereign wealth fund, the largest in the world, reported a loss of nearly $30 billion in the third quarter of 2026. The loss came as rising interest rates reduced the value of its bond investments.
Its fixed-income investments, which include government and corporate debt, delivered a negative return of 3.5% in the third quarter. Around 70% of its fixed-income holdings are invested in government bonds, while the remaining portion is invested in corporate debt. The fund holds 1,664 bonds across 51 countries. The fund has investments in around 7,100 companies across most countries. It holds stakes equivalent to about 1.5% of all listed companies worldwide, making it the world’s largest single investor. Its holdings include a $65.4 billion stake in Nvidia, along with investments in Apple, Alphabet and Microsoft.
NBIM’s management said this was a key reason for the overall decline. The fund had also announced plans to reduce its US Treasury holdings. In September, NBIM said it wanted to cut its investments in US government debt as part of a broader plan to reduce its allocation to government-issued bonds, CNBC reported. These large stakes give NBIM significant voting power in companies and influence over investment trends, CNBC reported.
Bonds were the main reason behind the fund’s weak performance. Rising government bond yields hurt the global bond market during the quarter. Yields surged as major central banks, including the US Federal Reserve, began raising interest rates. Concerns about inflation and rising government debt levels also put pressure on bond markets. Fixed-income investments make up just over one-fourth of the fund’s total portfolio. The fund has major investments in some of America’s biggest technology companies.
The fund recorded a loss of 278 billion Norwegian kroner ($29.7 billion) during the July-September quarter. The fund is worth around $2.3 trillion, according to CNBC.
Norges Bank Investment Management (NBIM), which manages the fund, said rising interest rates weakened returns from its fixed-income investments.
