World's largest wealth fund loses nearly $30B in Q3 as rising interest rates hit bonds

By Mucahithan Avcioglu

ISTANBUL (AA) - Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, recorded an accounting loss of 278 billion Norwegian kroner ($29.6 billion) in the third quarter of 2026 as rising interest rates weighed on its bond investments, its manager said Thursday.

The fund returned minus 0.5% during the July-September period, according to Norges Bank Investment Management.

Fixed-income investments returned minus 3.5%, while equities gained 0.5%. Unlisted real estate investments returned 0.4%, and unlisted renewable energy infrastructure investments gained 7.5%.

The overall return was 0.18 percentage points below the fund's benchmark index.

"The fund's return was close to flat, ending slightly negative as rising interest rates led to weaker results on our fixed-income investments," said Trond Grande, deputy CEO of Norges Bank Investment Management.

Grande said equity returns were also close to zero, although performance varied significantly across sectors.

Energy companies posted the strongest gains, while interest-rate-sensitive sectors, including utilities and real estate, declined.

The fund's total value fell by approximately $71.5 billion during the quarter. Alongside the accounting loss, a stronger Norwegian krone reduced its value by around $50.3 billion, while net inflows after management costs added approximately $8.5 billion.

The fund was valued at approximately $2.35 trillion as of Sept. 30.

Equities accounted for 72.1% of its portfolio, followed by fixed income at 25.8%, unlisted real estate at 1.6% and unlisted renewable energy infrastructure at 0.5%.

Mücahithan Avcıoğlu