NBIM disclosed a $29.7 billion loss (27.8 billion KR) for the September quarter, the steepest dip for the $2.3 trillion fund in its history.
The deficit stemmed largely from fixed‑income holdings, which posted a 3.5% negative return. About 70% of NBIM’s bond book is in government debt, leaving the rest in corporate bonds.
Global bond markets saw a rout in September as central banks accelerated rate hikes and inflation worries spiked, pushing yields higher and squeezing returns across the sector.
Deputy CEO Trond Grande said the fund’s overall performance was “close to flat,” noting that rising rates had eroded the fixed‑income segment more than the equity side.
Looking ahead, NBIM intends to reduce its U.S. Treasury holdings and cut its overall allocation to government‑issued debt, a move aimed at mitigating exposure to further yield hikes in the coming months.