Norway’s Government Pension Fund Global, the second-largest sovereign wealth fund in the world, has blamed global stock markets for a negative return over the second quarter, as it pursues a strategy to reduce its holding of bonds in developed European nations.

The fund returned -2.2% over the second quarter, according to a report by its investment manager, Norges Bank Investment Management. The bank said that the Nkr3.6 trillion (£390bn) fund returned -Nkr77bn in the three months to the end of June.