Norway’s Sovereign Wealth Fund Gets Hammered in the 3rd Quarter of 2023

Posted on 10/24/2023

In the third quarter of 2023, Norway Government Pension Fund Global returned -2.1%, equivalent to -374 billion kroner. The return on the fund’s equity investments was -2.1%, the return on the fixed income investments was -2.2%, whereas investments in unlisted real estate returned -3.3%. The return on unlisted renewable energy infrastructure was -2.4%. The sovereign wealth fund’s return was 0.17 percentage point better than the return on the benchmark index, equivalent to 27 billion kroner.

“The stock market saw a weaker quarter compared to the two previous quarters. It was particularly the tech, industrials and consumer discretionary sectors which contributed negatively to the return”, says Deputy CEO Trond Grande in a press release.

The krone strengthened against several of the main currencies during the quarter. The currency movements contributed to a decrease in the fund’s value of 264 billion kroner. In the third quarter, inflow into the fund amounted to 139 billion kroner.

The fund had a value of 14,801 billion kroner as at September 30, 2023. 70.6 percent of the fund was invested in equities, 27.1 percent in fixed income, 2.2 percent in unlisted real estate, and 0.1 percent in unlisted renewable energy infrastructure.

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