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Norway’s $2.3 trillion Government Pension Fund Global, the world’s largest sovereign wealth fund, lost 278 billion kroner ($29.7 billion) in the third quarter of 2026, as rising interest rates weakened fixed-income investments and a stronger Norwegian krone further reduced its value.
The fund, managed by Norges Bank Investment Management (NBIM), posted a return of minus 0.5%, falling 0.18 percentage points below its benchmark index. Rising interest rates weighed on bond investments, while equity returns remained close to zero, although performance varied widely across sectors.
"The fund’s return was close to flat, ending slightly negative as rising interest rates led to weaker results on our fixed-income investments," Deputy CEO Trond Grande said in a statement. Energy stocks posted the strongest gains among equity sectors, while utilities and real estate declined as higher interest rates weighed on their performance.
The fund’s results came amid a broad sell-off in global bond markets, with rising yields pushing up borrowing costs across major economies.
Government bond yields in the United States, France and Japan climbed to multi-decade highs in late September and early October as concerns over persistent inflation, heavy government borrowing and the prospect of interest rates staying higher for longer mounted.
Higher yields drove down the market value of existing bonds, putting pressure on fixed-income portfolios, which accounted for 25.8% of the fund’s portfolio, worth 5,649 billion kroner.
The Iran war has also kept energy prices elevated, fueling inflation concerns and making it harder for central banks to ease monetary policy. Higher oil prices threaten to raise costs for businesses and households, putting pressure on economic growth while keeping inflation and borrowing costs elevated.
The fund’s total value fell by 670 billion kroner during the third quarter. Investment performance accounted for a loss of 278 billion kroner, while the strengthening of the Norwegian krone reduced its value by another 472 billion kroner.
The fund received an additional 80 billion kroner after management costs, partially offsetting the decline. As of Sept. 30, 2026, its total value stood at 22.014 trillion kroner, while its investment portfolio had a market value of 22.025 trillion kroner.
Equities remained the fund’s largest asset class, accounting for 72.1% of its holdings, with a market value of 15.875 trillion kroner. Fixed-income investments made up 25.8%, worth 5.649 trillion kroner. Unlisted real estate accounted for 1.6%, valued at 363 billion kroner, while unlisted renewable energy infrastructure represented 0.5%, worth 114 billion kroner.
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