Norway Oil Fund Recorded 3Q Loss of $34 Billion

Norway's $1.4 trillion sovereign-wealth fund made a negative return of 2.1% in the third quarter of 2023, equivalent to a loss of 374 billion Norwegian kroner ($33.76 billion), driven by a weaker equity market and a stronger krone.

Norges Bank Investment Management, the arm of the central bank that manages the world's largest sovereign-wealth fund, commonly known as the oil fund, said Tuesday that the fund had a market value of NOK14.801 trillion as of Sep. 30.

"The stock market saw a weaker quarter compared to the two previous quarters," said Norges Bank Investment Management Deputy Chief Executive Trond Grande. "It was particularly the tech, industrials and consumer discretionary sectors which contributed negatively to the return."

Equity investments made a negative return of 2.1% in the quarter, fixed income investments a negative return of 2.2%, unlisted real estate a negative return of 3.3% and unlisted renewable energy infrastructure made a negative return of 2.4%.

The Norwegian krone strengthened against several major currencies during the quarter, with currency movements decreasing the fund's value by NOK264 billion, it said.

The fund was 70.6% invested in equities, 27.1% in fixed income, 2.2% in unlisted real estate and 0.1% in unlisted renewable-energy infrastructure.

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