The Strategist

Norway's sovereign fund posts another loss in Q3

10/25/2023 - 10:48

The largest sovereign wealth fund in the world, Norway's Sovereign Pension Fund (also known as the Oil Fund), reported a loss for the third quarter of 2023.

Julian-G. Albert
Julian-G. Albert
The fund reported that, with the strengthening of the national currency, its investment losses for the July–September period totaled 2.1%, or 374 billion kroner ($33.76 billion).

The fund saw losses on its equity investments of 2.1%, fixed-income instrument investments of 2.2%, real estate investments of 3.3%, and renewable energy (RE) assets of 2.4%.

“In contrast to the preceding two quarters, the stock market had a poorer quarter,” reads the fund’s report. “The consumer, industrial, and technology sectors made a particularly negative contribution,” said Trond Grande, deputy director of Norges Bank Investment Management.

Meanwhile, from July to September, the fund's value dropped by 264 billion kroner due to the krone's strengthening relative to other major global currencies.