Key Takeaways
- • Norway's sovereign wealth fund, managed by Norges Bank Investment Management (NBIM), reported a third-quarter accounting loss of 278 billion kroner (about $29.7 billion), a return of -0.5%, according to CNBC coverage of the announcement.
- • Fixed-income investments were the main drag, returning -3.5% as rising interest rates and a global bond market rout weighed on government and corporate debt holdings.
- • Equities, which make up 72% of the portfolio, returned 0.5% in the quarter, with energy stocks gaining on higher oil prices while utilities and real estate fell.
- • The fund, valued at about $2.3 trillion, remains the largest single investor by holdings in listed companies, with stakes in roughly 7,100 firms.
- • NBIM had already signaled plans to cut its U.S. Treasury holdings and reduce its allocation to government debt, and CEO Nicolai Tangen had warned that first-half returns would not be repeated.
Summary
Norway's sovereign wealth fund posted a loss of 278 billion kroner, or about $29.7 billion, in the third quarter of 2025, according to a statement from Norges Bank Investment Management (NBIM), which manages the fund. Per CNBC, the fund's return for the period was -0.5%. The loss was driven primarily by its fixed-income portfolio, which returned -3.5% as rising interest rates reduced bond values. Government bond yields surged during the quarter as major central banks, including the U.S. Federal Reserve, moved into rate-hiking cycles and concerns about inflation and government debt mounted.
Fixed income accounts for just over a quarter of the portfolio. About 70% of that allocation is in government bonds, with the remainder in corporate debt, spread across 1,664 bonds in 51 countries. NBIM noted that last month it had said it wanted to reduce its U.S. Treasury holdings as part of a broader plan to lower its allocation to government-issued debt.
Equities, which represent 72% of the portfolio, returned 0.5% for the fund in the quarter. NBIM Deputy CEO Trond Grande said returns were close to zero but varied widely by sector. Energy companies rose the most, benefiting from surging oil prices during the U.S.-Iran conflict, while interest-rate-sensitive sectors such as utilities and real estate declined. Real estate returned 0.4% and renewable energy infrastructure returned 7.5% over the quarter.
U.S. equity benchmarks were mixed over the period. The S&P 500 gained 2.03%, the Nasdaq Composite rose 2.2%, and the Dow Jones Industrial Average fell 1.9%. NBIM holds stakes in about 7,100 companies worldwide, representing 1.5% of listed companies globally, and its largest disclosed position is a $65.4 billion stake in Nvidia, alongside holdings in Apple, Alphabet and Microsoft.
The quarterly loss follows a strong first half, in which the fund returned 12.95% and recorded a record first-half profit of nearly $185 billion. Over the summer, CEO Nicolai Tangen told CNBC that investors should not expect the same level of returns seen in the first half to continue.
Fixed income accounts for just over a quarter of the portfolio. About 70% of that allocation is in government bonds, with the remainder in corporate debt, spread across 1,664 bonds in 51 countries. NBIM noted that last month it had said it wanted to reduce its U.S. Treasury holdings as part of a broader plan to lower its allocation to government-issued debt.
Equities, which represent 72% of the portfolio, returned 0.5% for the fund in the quarter. NBIM Deputy CEO Trond Grande said returns were close to zero but varied widely by sector. Energy companies rose the most, benefiting from surging oil prices during the U.S.-Iran conflict, while interest-rate-sensitive sectors such as utilities and real estate declined. Real estate returned 0.4% and renewable energy infrastructure returned 7.5% over the quarter.
U.S. equity benchmarks were mixed over the period. The S&P 500 gained 2.03%, the Nasdaq Composite rose 2.2%, and the Dow Jones Industrial Average fell 1.9%. NBIM holds stakes in about 7,100 companies worldwide, representing 1.5% of listed companies globally, and its largest disclosed position is a $65.4 billion stake in Nvidia, alongside holdings in Apple, Alphabet and Microsoft.
The quarterly loss follows a strong first half, in which the fund returned 12.95% and recorded a record first-half profit of nearly $185 billion. Over the summer, CEO Nicolai Tangen told CNBC that investors should not expect the same level of returns seen in the first half to continue.
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