Norway’s Government Pension Fund Global posted a negative 0.5% investment return in the third quarter as rising rates hurt bonds, Norges Bank Investment Management (NBIM) said, while the stronger krone also cut its reported value.
The fund returned negative 0.5% in the quarter, measured in its currency basket, equivalent to a negative accounting return of 278 billion kroner. Fixed-income investments returned minus 3.5%, while equities gained 0.5%. Unlisted real estate advanced 0.4%, and unlisted renewable energy infrastructure gained 7.5%.
NBIM linked the fixed-income performance to higher interest rates. The fund’s total value dropped by 670 billion kroner, a separate figure that also reflects currency movements and additions after costs. A stronger krone reduced the value by 472 billion kroner, while an 80 billion kroner addition after management costs partly offset the decline.
The fund was valued at 22,014 billion kroner on Sept. 30. Equities accounted for 72.1% of its portfolio, fixed income 25.8%, unlisted real estate 1.6% and unlisted renewable energy infrastructure 0.5%.
Within equities, energy companies recorded the strongest sector performance, while utilities and real estate declined. NBIM identified utilities and real estate as sensitive to interest rates. The third-quarter result followed a 9.4% return in the first half of 2026, equivalent to an accounting return of 1,753 billion kroner, according to NBIM’s half-year report.
Norway’s Parliament legislated the fund in 1990 after the North Sea oil discovery; the first deposit came in 1996. It invests Norway’s oil revenues abroad as long-term savings for current and future generations.
A Ministry of Finance-appointed expert group is assessing the fund’s purpose and the owner’s risk tolerance alongside its bond investment strategy. A Finance Ministry-appointed expert group is due to report by Jan. 25, 2027, according to NBIM’s September submission.
