The world's largest sovereign fund returned 15.1%, driven by technology stocks like NVIDIA
The $2.2 trillion Norwegian sovereign fund is expected to achieve a return of 15.1% in 2025, primarily driven by technology giants like NVIDIA in the U.S. stock market, with stock investment returns nearing 20%, and other asset classes also experiencing growth. Despite the robust performance, concerns have been raised by experts due to over half of the assets being heavily concentrated in the U.S. A government expert panel has urged the fund to be cautious of geopolitical turmoil and to examine the potential risks associated with high geographical concentration
The Norwegian Sovereign Wealth Fund recorded a 15.1% annual return in 2025, continuing its reliance on large tech stocks driven by strong performances from technology and financial companies. This global largest sovereign fund, with a size of $2.2 trillion, is managed by the Norwegian Central Bank Investment Management (NBIM), which stated in a release on Thursday that stock investments achieved a return of 19.3% last year, with other asset classes also experiencing growth. Despite the overall solid performance, the fund still lagged behind its benchmark index by 28 basis points.
"Stocks in the technology, financial, and basic materials sectors performed exceptionally well, making significant contributions to overall returns," said CEO Nicolai Tangen in the statement. The fund's largest holdings include tech giants such as NVIDIA, Apple, Microsoft, Alphabet, and Amazon.
With recent tensions in U.S.-Europe relations due to Trump's threats to occupy Greenland, experts have raised concerns about the fund's allocation, with more than half of its assets concentrated in the U.S. This week, a government-appointed expert group specifically recommended that the fund prepare for the escalating geopolitical turmoil.
Tech Stocks Dominate Performance
Large tech stocks have consistently dominated the fund's performance over the past few quarters. NBIM holds approximately 1.5% of the listed shares of around 7,200 companies globally, making it the largest sovereign wealth fund in the world. Its largest holdings are concentrated in U.S. tech giants, including NVIDIA, Apple, Microsoft, Alphabet, and Amazon.
According to previous reports by Bloomberg, NBIM has adjusted its holdings in its largest U.S. tech stocks, but these companies still occupy a core position in its investment portfolio.
In addition to stock investments, other asset classes of the fund also recorded positive returns. Fixed income investments yielded a return of 5.4%, while unlisted real estate investments returned 4.4%.
The standout performer was unlisted renewable energy infrastructure investments, which achieved a return of 18.1%. The fund was established in the early 1990s and its portfolio includes stocks, fixed income, real estate, and renewable energy infrastructure, with all investments made outside Norway.
Geographic Concentration Raises Questions
The fund has more than half of its assets concentrated in the U.S., primarily in stocks and bonds. Recent comments from Trump threatening to occupy Greenland have worsened U.S.-Europe relations, leading some experts to question whether NBIM's geographic concentration is too high. The fund invests according to a benchmark index set by the Norwegian Ministry of Finance, leaving limited room for active investment.
This week, a government-appointed expert group specifically advised the fund to prepare for the escalating geopolitical turmoil, particularly mentioning the U.S. government's association of import tariffs with intentions to annex Greenland.
However, the expert group also recommended not to restrict the fund's investment scope. This means that while addressing geopolitical risks, NBIM will continue to maintain its global and diversified investment strategy
