World's biggest sovereign fund loses US$43 billion in Q3

Norway's sovereign wealth fund, the world's biggest, said Friday it had lost more than US$43 billion (RM203 billion) in the third quarter as stock markets plunged and interest rates rose.

Weighed down by its shareholdings, the fund posted a negative return of 4.4% in the quarter – a loss of 449 billion kroner (US$43.4 billion) – said Norway's central bank, which manages the fund.

"The third quarter has been characterised by rising interest rates, high inflation, and war in Europe. This has also affected the markets," the fund's deputy chief executive Trond Grande said in a statement.

The fund, in which the Norwegian state's oil revenues are placed, had already posted a dizzying 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% on its shareholdings, which represent 68.3% of its portfolio.

It saw negative returns of 3.9% on its bond holdings, which make up 28.5% of its assets, and 1.1% on its real estate stake, which accounts for 3.1%.

The Norwegian krone has weakened against major currencies, which together with Norway's flourishing oil revenues, has helped limit some of the damage.

The fund, one of the biggest investors in the world with stakes in some 9,400 companies, was still valued at US$1.18 trillion at the end of September.