World's largest sovereign fund loses $30B amid bond turmoil
Norway's sovereign wealth fund, the largest in the world, recorded a loss of $29.7 billion in the third quarter, due to a decline in the performance of its bond investments caused by rising global interest rates. Fixed income assets experienced a negative return of 3.5%. Despite a dip in its stock performance—stocks accounting for 72% of its assets and generating a positive return of 0.5%—the bond losses were more significant. The fund is moving to reduce its investments in U.S. Treasury bonds, amidst ongoing expectations that rising interest rates will continue to impact market performance in the future.
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