Norway’s sovereign wealth fund posts $29 billion third-quarter loss

Norway’s $2.36 trillion sovereign wealth fund reported a third-quarter loss of 278 billion kroner ($29.2 billion) as higher interest rates depressed its bond holdings.

• The fund’s bond investments fell 3.5 percent in the quarter, while equities and real estate posted only limited gains.
• Deputy CEO Trond Grande said higher interest rates hurt fixed-income holdings and that the fund had trimmed its relative weight in some major tech companies.
• The Federal Reserve and the European Central Bank raised interest rates during the third quarter.
• Last month the fund announced plans to reduce its holdings of US Treasury bonds as part of a broader reduction of sovereign debt exposure.