Norway’s sovereign wealth fund, the world’s largest, posted a record annual profit of 2.51 trillion Norwegian crowns ($222.4 billion) in 2024, fueled by a strong rally in technology stocks. However, the fund’s leadership has cautioned that such high returns may not be sustainable in the future.

Tech Stocks Drive Gains but Risks Loom
Nicolai Tangen, CEO of Norges Bank Investment Management (NBIM), which manages the fund, highlighted that American technology stocks played a key role in the fund’s performance. However, he warned investors not to expect the same level of returns moving forward.
The fund’s deputy CEO also pointed out rising concentration risks within their portfolio. While technology stocks have contributed significantly to profits, their dominance in the fund’s holdings increases potential downside risks.
Managing Concentration Risk
Tangen acknowledged that the fund has had a small underweight position in technology stocks but emphasized that managing concentration risk is challenging. “We deal with concentration risk by being a long-term investor. We have to live with higher concentration risk, and there is not much we can do about it,” he said.
Despite Monday’s market dip in tech stocks, the fund has not made any major portfolio changes. It continues to maintain its exposure to leading companies in the sector.
No Plans to Exit Tesla, Cautious on Nvidia
When asked about Tesla, Tangen stated that the fund has no plans to pull out of the electric vehicle maker. However, he declined to give a strong opinion on Nvidia’s share price.
China’s Advancements in Technology
The fund’s leadership has also been closely monitoring global technological developments. Based on discussions with company executives, Tangen noted that China is “very advanced in many areas of technology development.”
Surprise Over DeepSeek News
The CEO also commented on recent developments surrounding DeepSeek, saying the news came as a surprise to the fund, just as it did for others in the market.
A Global Investment Powerhouse
Norway’s sovereign wealth fund, which manages the country’s revenues from oil and gas production, is one of the largest investors in the world. It owns, on average, 1.5% of all publicly listed stocks globally and also invests in bonds, real estate, and renewable energy assets.
While 2024 brought record profits, the fund’s leadership remains cautious about the future, emphasizing the importance of long-term investment strategies in navigating an increasingly volatile market.
Norway’s Wealth Fund Hits 19.7T Kr, Gains 13%
Norway’s Government Pension Global Fund was valued at 19.7 trillion kroner at the end of 2024, according to Norges Bank Investment Management (NBIM). The fund achieved a 13% return for the year, though it was 45 basis points below its benchmark index.
NBIM manages the fund on behalf of Norway’s population. It was established in the 1990s to invest surplus revenues from Norway’s oil and gas industry. Today, the fund is one of the world’s largest sovereign wealth funds, holding stakes in over 8,000 companies across 63 countries.
Around 70% of the fund’s benchmark index consists of equities, including shares in major global firms such as Apple, Microsoft, Nvidia, and Amazon. In addition to stocks, the fund invests in fixed income, including government and corporate bonds, as well as in real estate and renewable energy infrastructure.
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