Key Takeaways
- • Norway's sovereign wealth fund, NBIM, reported a third-quarter 2025 accounting loss of 278 billion kroner (about $29.7 billion) on its $2.3 trillion portfolio, according to CNBC.
- • Fixed income returned negative 3.5%, the main driver of the loss as rising interest rates and a global bond market rout hit government bond holdings.
- • Equities, which make up 72% of the fund, returned 0.5% in the quarter, with energy stocks rising most on higher oil prices while utilities and real estate fell.
- • Deputy CEO Trond Grande said the fund's return was close to flat, ending slightly negative; real estate returned 0.4% and renewable energy infrastructure returned 7.5%.
- • The result follows a first-half 2025 return of 12.95% and a record first-half profit near $185 billion, and comes after NBIM said it wanted to cut its U.S. Treasury holdings.
Summary
Norway's sovereign wealth fund, Norges Bank Investment Management (NBIM), said its investment portfolio posted a loss of 278 billion kroner, or about $29.7 billion, in the third quarter, according to CNBC. The fund, the largest sovereign wealth fund in the world with $2.3 trillion under management, attributed the decline primarily to rising interest rates that weakened its bond holdings. The third quarter saw a global bond market rout as government bond yields surged amid rate-hiking cycles at major central banks, including the U.S. Federal Reserve, and rising concerns about inflation and government debt levels.
Fixed income, which accounts for just over a quarter of the portfolio, delivered a negative return of 3.5%. Roughly 70% of the fixed income allocation is in government bonds, with the remainder in corporate debt, spread across 1,664 bonds in 51 countries. Last month, NBIM said it wanted to reduce its U.S. Treasury holdings as part of a broader plan to cut its allocation to government-issued debt.
Equities, which represent 72% of the portfolio, returned 0.5% for the quarter. Sector performance diverged sharply: energy companies rose the most as oil prices surged amid the continuing U.S.-Iran war, while interest-rate-sensitive sectors such as utilities and real estate declined. NBIM holds stakes in about 7,100 companies, equal to 1.5% of listed companies globally, and its largest holdings include a $65.4 billion stake in Nvidia along with positions in Apple, Alphabet, Microsoft, Exxon Mobil, Shell and Chevron. Real estate returned 0.4% and renewable energy infrastructure returned 7.5% in the quarter.
Deputy CEO Trond Grande said in a statement that the fund's return was close to flat, ending slightly negative, as rising rates weighed on fixed-income results. CEO Nicolai Tangen had earlier told CNBC over the summer that investors should not expect the strong gains of the first half to continue. The fund posted a first-half return of 12.95% and a record first-half profit approaching $185 billion. Established in 1998 to invest revenues from Norway's oil, the fund remains one of the most influential investors in global equity markets given its voting power and scale.
Fixed income, which accounts for just over a quarter of the portfolio, delivered a negative return of 3.5%. Roughly 70% of the fixed income allocation is in government bonds, with the remainder in corporate debt, spread across 1,664 bonds in 51 countries. Last month, NBIM said it wanted to reduce its U.S. Treasury holdings as part of a broader plan to cut its allocation to government-issued debt.
Equities, which represent 72% of the portfolio, returned 0.5% for the quarter. Sector performance diverged sharply: energy companies rose the most as oil prices surged amid the continuing U.S.-Iran war, while interest-rate-sensitive sectors such as utilities and real estate declined. NBIM holds stakes in about 7,100 companies, equal to 1.5% of listed companies globally, and its largest holdings include a $65.4 billion stake in Nvidia along with positions in Apple, Alphabet, Microsoft, Exxon Mobil, Shell and Chevron. Real estate returned 0.4% and renewable energy infrastructure returned 7.5% in the quarter.
Deputy CEO Trond Grande said in a statement that the fund's return was close to flat, ending slightly negative, as rising rates weighed on fixed-income results. CEO Nicolai Tangen had earlier told CNBC over the summer that investors should not expect the strong gains of the first half to continue. The fund posted a first-half return of 12.95% and a record first-half profit approaching $185 billion. Established in 1998 to invest revenues from Norway's oil, the fund remains one of the most influential investors in global equity markets given its voting power and scale.
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