The world's largest sovereign wealth fund returns 15.1%, driven by tech stocks such as Nvidia.
Norway's sovereign wealth fund recorded an annual return of 15.1% in 2025, continuing its reliance on large technology stocks as the world's largest sovereign fund, with a $2.2 trillion portfolio, was boosted by the strong performance of technology and financial companies.
The fund’s manager, Norges Bank Investment Management (NBIM), said in a statement on Thursday that equity investments yielded a return of 19.3% last year, while other asset classes also saw growth. Despite the solid overall performance, the fund still lagged behind its benchmark index by 28 basis points.
"Technology, financials, and basic materials stocks performed particularly well and made a significant contribution to the overall return," CEO Nicolai Tangen said in the statement. The fund’s largest holdings include technology giants such as Nvidia, Apple, Microsoft, Alphabet, and Amazon.
With recent tensions between Europe and the US sparked by events like Trump’s threat to occupy Greenland, experts are paying attention to the fund’s allocation of over half its assets in the United States. This week, a government-appointed expert panel specifically advised the fund to prepare for escalating geopolitical turmoil.
Technology stocks dominate performance
Large technology stocks have continued to dominate the fund’s performance in recent quarters. NBIM holds about 1.5% of the listed shares in approximately 7,200 companies globally, making it the largest sovereign wealth fund in the world. Its largest positions are concentrated in US technology giants, including Nvidia, Apple, Microsoft, Alphabet, and Amazon.
According to a previous Bloomberg report, NBIM has trimmed its holdings in some of the largest US technology stocks, but these companies remain at the core of its investment portfolio.
In addition to equities, other asset classes in the fund also posted positive returns. Fixed income investments yielded 5.4%, while unlisted real estate investments returned 4.4%.
The best performer was unlisted renewable energy infrastructure investments, which posted a return of 18.1%. The fund was established in the early 1990s and its portfolio covers equities, fixed income, real estate, and renewable energy infrastructure, with all investments made outside Norway.
Geographic concentration raises questions
More than half the fund’s assets are concentrated in the United States, mainly in stocks and bonds. In recent weeks, Trump’s threats to occupy Greenland and other remarks have worsened US-Europe relations, causing some experts to question whether NBIM’s geographic concentration is too high. The fund invests according to a benchmark set by the Norwegian Ministry of Finance, leaving limited room for active investment.
This week, a government-appointed panel specifically advised the fund to prepare for escalating geopolitical turmoil, and made particular reference to the US government linking import tariffs to the intention of annexing Greenland.
Nevertheless, the panel also advised against restricting the fund’s investment scope. This means that while responding to geopolitical risks, NBIM will continue its global and diversified investment strategy.
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