World’s largest sovereign wealth fund gains 5.8% in third quarter

Norway’s $2 trillion sovereign wealth fund — the largest of its kind in the world — on Wednesday reported a 5.8% return during the third quarter, powered by strong stock market gains across mining, telecommunications and financial services.

Norges Bank Investment Management (NBIM) manages the fund on behalf of the Norwegian population. Set up in the 1990s to invest excess revenues from Norway’s oil and gas industry, the enormous fund currently invests in assets across 70 countries.

At the end of September, the Government Pension Fund Global had a value of 20.4 trillion Norwegian kroner ($2 trillion), an increase of 854 billion Norwegian kroner during the the three-month period. The accounting value was 1.03 trillion kroner, translating into a profit of $102.56 billion.

The fund’s return was 0.06% lower than the benchmark index, NBIM said Wednesday. The return on its equity investments for the quarter was 7.7%.

“The result is driven by strong returns in the stock market, particularly in basic materials, telecommunications and the financial sector”, Trond Grande, deputy CEO of Norges Bank Investment Management, said in a statement.

U.S. stocks account for almost 40% of NBIM’s equity investments.

Among NBIM’s U.S. equity holdings are stakes in tech giants Meta, Alphabet, Amazon, Nvidia and Microsoft. The fund is also a major shareholder in companies including JP Morgan Chase, Walmart, Eli Lilly and Coca Cola.

During the reporting period, stock markets were volatile, with the major U.S. averages seeing both selloffs and record highs as Wall Street grappled with U.S. tariffs and looked for clues on the trajectory for the American economy.

However, Big Tech stocks largely saw gains over the course of the quarter, as investors continued to bet big on the AI boom. More recently – and since the NBIM reporting period ended – volatility has taken hold of tech megacaps, amid growing concerns that an AI bubble is forming in equity markets.

Aside from its equity holdings, NBIM is also invested in fixed income, renewable energy infrastructure and real estate. The fund’s return on fixed income investments during the third quarter was 1.4%, while renewable energy infrastructure added 0.3%, as real estate returned 1.1%.

Overall, 71.2% of its investments are allocated to equities, 26.6% in fixed income, 1.8% in unlisted real estate, and 0.4% in renewable energy infrastructure.

Capital inflows into the fund reached 81 billion kroner after management costs during the period.

In early September, the fund announced a decision to invest $543 billion in a Manhattan office tower.

In the three months to Sept. 30, the Norwegian krone appreciated 0.7% against the U.S. dollar. Over the course of the year, the Norwegian currency has gained 12% versus the greenback.

Last month, NBIM drew the ire of the Trump administration following a decision from Norwegian officials to restrict the sovereign wealth fund’s investment activity in Israel.

The U.S. State Department told CNBC at the time that it was “very troubled” by the fund divesting its stake in New York-listed Caterpillar, a move that came amid concerns in Norway about certain companies’ ties to the conflict in the Gaza Strip.