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Norwegian sovereign wealth fund: Despite a return of 5.7% - value has fallen!
Norwegian sovereign wealth fund presents positive returns in 2025, despite decline in fund value due to currency adjustments and market changes.
Norwegian sovereign wealth fund: Despite a return of 5.7% - value has fallen!
The Norwegian sovereign wealth fund, officially known as Government Pension Fund Global, has seen its value fall in the first half of 2025 despite positive returns. Fund managers Nicolai Tangen and Trond Grande presented the fund's results on August 13, 2025. The return was 5.7 percent, which was 0.05 percentage points below the benchmark index. Overall, the fund value fell by 156 billion crowns to 19.586 trillion crowns, which is due to the increase in the crown exchange rate. Assets held in foreign currency even lost NOK 1,010 billion in value.
The sovereign wealth fund's accounting income for the first half of 2025 was NOK 698 billion. After deducting costs, NOK 156 billion flowed into the fund's coffers. The return on equity investments was 6.7 percent, while fixed-interest investments generated 3.3 percent and unlisted real estate 4.0 percent. Particularly noteworthy is the return on unlisted renewable energy infrastructure, which totaled 9.4 percent.
Asset allocation and sector development
Stock investments make up 70.6 percent of the fund assets, followed by fixed-interest investments at 27.1 percent. Unlisted real estate and unlisted renewable energy infrastructure take up a smaller share. The financial, telecommunications and energy and water supply sectors achieved the highest returns. In contrast, the weakest returns were seen in the healthcare sector.
A return of 2.5 percent was achieved on government bonds, with the fund holding the largest holdings in bonds from the USA, Japan and Germany. Real estate investments only achieved a return of 1.8 percent and accounted for 3.6 percent of the fund assets. Unlisted properties contributed 4.0 percent, while listed properties even recorded a decline of -0.5 percent.
In addition, the fund made two significant new investments: a 49 percent stake in offshore wind projects in Denmark and Germany was made for four billion euros (approx. 45 billion NOK).
View of the overall development
The fund's value is currently estimated at over 20.1 trillion Norwegian crowns (more than 1.7 trillion euros). The pension fund performs an important function as a financial reserve for future generations of the oil-rich nation of Norway. It was created to protect future generations, especially at a time when oil drilling may no longer be possible. The income from Norwegian oil and gas production finances this important sovereign wealth fund, which has existed since the beginning of 2006 and whose official owner is the Norwegian Ministry of Finance.
For further information about the results and developments of the Norwegian sovereign wealth fund, see the reports from Business portal Norway and Focus.