World's largest wealth fund posts $30 billion loss after bond market turbulence

Norway's sovereign wealth fund — the largest in the world — said Thursday that its investment portfolio delivered a loss of $30 billion in the third quarter as rising interest rates dented returns on its bond holdings.

Norges Bank Investment Management, which manages the $2.3 trillion fund, said the accounting return for the period was a loss of 278 billion kroner ($29.7 billion).

Its fixed income investments delivered a negative return of 3.5%, with the fund's management saying this was a key driver of the overall downturn.

"The fund's return was close to flat, ending slightly negative as rising interest rates led to weaker results on our fixed-income investments," NBIM's Deputy CEO Trond Grande said in a statement.