Norway wealth fund loses $31bn in third quarter

Norway's sovereign wealth fund reported a negative return of 278 billion kroner, or $31 billion, in the third quarter, saying higher interest rates hurt its fixed-income investments.

The fund, described as the world's largest with assets of more than $2 trillion, said its quarterly return was negative 0.5 percent. Fixed-income investments returned negative 3.5 percent, while equity and property portfolios rose 0.5 percent and 0.4 percent respectively.

Deputy chief executive Trond Grande said the fund's return was close to flat but ended slightly negative because rising interest rates weakened fixed-income results. The fund reported a value of 22,014 billion kroner at the end of September.

The fund is fuelled by Norway's oil revenues and is invested in more than 7,100 companies worldwide. It holds about 1.5 percent of all listed companies globally.