Norway’s sovereign wealth fund achieved a 15.1% annual return for 2025, with strong performance from technology and financial companies driving results. This $2.2 trillion fund, the world's largest of its kind, continues to rely heavily on major technology stocks.
Norges Bank Investment Management (NBIM), which manages the fund, stated on Thursday that its equity investments yielded a 19.3% return last year, while other asset classes also posted gains. Despite the overall solid performance, the fund still trailed its benchmark index by 28 basis points.
"Stocks in the technology, financial, and basic materials sectors delivered outstanding performance, making significant contributions to the overall return," Chief Executive Nicolai Tangen said in the statement. The fund's largest holdings include tech giants such as NVIDIA, Apple, Microsoft, Alphabet, and Amazon.
With recent tensions in US-Europe relations due to events like Trump's threats to occupy Greenland, experts are paying close attention to the fund's allocation, where over half of its assets are concentrated in the United States. This week, a government-appointed expert panel specifically advised the fund to prepare for escalating geopolitical turmoil.
Technology stocks have consistently dominated the fund's performance in recent quarters. NBIM holds approximately 1.5% of the listed shares in about 7,200 companies worldwide, making it the largest sovereign wealth fund globally. Its largest holdings are concentrated in US tech giants, including NVIDIA, Apple, Microsoft, Alphabet, and Amazon.
According to a previous Bloomberg report, NBIM has made adjustments by trimming some of its largest US tech holdings, yet these companies remain core positions within its portfolio.
Beyond equity investments, the fund's other asset classes also generated positive returns. Fixed-income investments returned 5.4%, while unlisted real estate investments yielded 4.4%.
The most standout performance came from unlisted renewable energy infrastructure investments, which achieved an 18.1% return. Established in the early 1990s, the fund's portfolio spans stocks, fixed income, real estate, and renewable energy infrastructure, with all investments located outside of Norway.
The fund's heavy concentration of over half its assets in the United States, primarily in stocks and bonds, has drawn scrutiny. Recent remarks by Trump, including threats to occupy Greenland, have worsened US-Europe relations, leading some experts to question if NBIM's geographical concentration is too high. The fund invests according to a benchmark index set by Norway's Ministry of Finance, leaving limited room for active investment.
This week, a government-appointed expert panel specifically advised the fund to prepare for intensifying geopolitical turmoil, notably citing the US government's linking of import tariffs with intentions to annex Greenland.
However, the expert panel also recommended against restricting the fund's investment scope. This suggests that while addressing geopolitical risks, NBIM will maintain its global and diversified investment strategy.
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