norges bank
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Norway’s $2 trillion sovereign wealth fund, the world’s largest sovereign wealth fund of its kind, on Wednesday reported a third-quarter return of 5.8%, helped by strong gains in stock markets across basic materials, telecommunications and financial services.
Norges Bank Investment Management (NBIM) manages the Fund on behalf of Norwegian citizens. Founded in the 1990s to invest surplus profits from Norway’s oil and gas industry, the giant fund now invests in assets in 70 countries.
At the end of September, the asset value of global government pension funds was NOK 20.4 trillion ($2 trillion), an increase of NOK 854 billion in the past three months. The accounting value was SEK 1.3 trillion, which translated into profit was $102.56 billion.
NBIM announced Wednesday that the fund’s return was 0.06% lower than the benchmark index. Equity returns for the quarter were 7.7%.
“This result was driven by strong returns in the stock market, particularly in the basic materials, telecommunications and financial sectors,” Trond Grande, deputy CEO of Norges Bank Investment Management, said in a statement.
U.S. stocks account for nearly 40% of NBIM’s equity investments.
NBIM’s U.S. stock holdings include stocks of tech giants. Meta, alphabet, Amazon, Nvidia and microsoft. The fund is also a major shareholder in the following companies: JP Morgan Chase, walmart, Eli Lilly and coca cola.
Stock markets were volatile during the reporting period, with major U.S. averages posting both declines and record highs as Wall Street grappled with U.S. tariffs and looked for clues about the trajectory of the U.S. economy.
But Big Tech stocks generally rose throughout the quarter as investors continued to bet big on the AI boom. More recently, and since the end of the NBIM reporting period, tech megacaps have been dominated by volatility amid growing concerns that an AI bubble is forming in the stock market.
In addition to its equity holdings, NBIM also invests in bonds, renewable energy infrastructure, and real estate. The fund returned 1.4% on fixed income investments in the third quarter, with returns on renewable energy infrastructure of 0.3% and returns on real estate of 1.1%.
Overall, 71.2% of investments are allocated to stocks, 26.6% to bonds, 1.8% to private real estate, and 0.4% to renewable energy infrastructure.
Capital inflows into the fund amounted to SEK 81 billion, excluding management costs, during the same period.
In early September, the fund announced its decision to invest $543 billion in Manhattan office towers.
In the three months to September 30, the Norwegian krone appreciated by 0.7% against the US dollar. Over the year, the Norwegian currency appreciated by 12% against the dollar.
Last month, NBIM drew the ire of the Trump administration after Norwegian authorities decided to restrict the sovereign wealth fund’s investment activities in Israel.
The U.S. State Department told CNBC at the time that it was “deeply troubled” by the fund’s sale of its New York-listed Caterpillar stock. The move came amid concerns in Norway over links between certain companies and the conflict in the Gaza Strip.
