Norway $2.3 trillion fund posts best quarter since 2020

Norway's sovereign wealth fund, the world's largest at $2.3 trillion, reported its best quarterly return in six years during the second quarter, with a gain of 11.5%. Managed by Norges Bank Investment Management, the fund's performance was driven by equity investments, which yielded a 16% return, while fixed income investments contributed 1.1%.

Unlisted real estate and infrastructure investments returned 1.8% during the same period. The fund, which owns about 1.5% of all listed stocks globally, has become a significant investor in artificial intelligence-linked companies. As of the end of the first half, Nvidia Corp. remained the fund's biggest holding, followed by Microsoft Corp. and Apple Inc. CEO Nicolai Tangen stated that "chips drive fund's value on a scale not seen before."

Established in the 1990s, the fund invests Norway's oil and gas industry proceeds, and transfers from the fund, limited to 3% annually, contribute about a quarter of Norway's budget spending. The fund's first-half return of 9.4% surpassed its benchmark index by 22 basis points. Tech stocks, led by AI-related companies, accounted for the biggest driver of the fund's full-year return of 15.1% in 2025.

The ten biggest holdings make up 20% of the fund's value, with US investments accounting for 55%. Tangen emphasized that as a broad-based index fund, mitigating concentration risks is limited. The fund is mandated to closely track a benchmark index, leaving limited scope for active management. The results come amid a domestic political debate over the fund's ethical guidelines and its investments in companies involved in Israel's war in Gaza.

Norway's parliament has ordered a review of the fund's ethical guidelines, which is expected to conclude by October 15. NBIM has also expanded its internal use of artificial intelligence to screen newly added portfolio companies for governance, corruption, and human-rights risks.