The Norwegian sovereign wealth fund, the world’s largest, said Friday it lost more than $43 billion in the third quarter as stock markets plummeted and interest rates rose.
Weighted by its shareholding, the fund posted a negative return of 4.4 percent in the quarter – a loss of 449 billion kroner ($43.4 billion) – said the Bank of Norway, which manages the fund.
“The third quarter was marked by rising interest rates, high inflation and war in Europe. This also affects markets,” the fund’s deputy CEO, Trond Grande, said in a statement.
The fund, which houses the Norwegian state’s oil revenues, already posted a staggering loss of 1.68 trillion kroner in the first half of the year.
In the June-September period, the fund reported a negative return of 4.8 percent on its shareholding, which represents 68.3 percent of its portfolio.
It saw negative returns of 3.9 percent on its bond holdings, which make up 28.5 percent of its assets, and 1.1 percent on its real estate stake, which accounts for 3.1 percent.
The Norwegian krone has weakened against major currencies, which along with booming Norwegian oil revenues has helped mitigate some of the damage.
The fund, one of the largest investors in the world with stakes in some 9,400 companies, was valued at $1.18 trillion at the end of September.