Equities deliver 19.3% return, while renewable infrastructure also post double-digit gain, with nearly 40% allocation to US stocks paying as AI optimism, rate cuts boost markets.

Norway’s sovereign wealth fund — the world’s largest — posted an annual profit of 2.36 trillion Norwegian kroner (about $248 billion) last year, delivering a 15.1% return as a rally in global stock markets boosted performance, according to the fund’s financial results released Friday.

By the end of 2025, the fund’s total value had climbed to approximately $2.2 trillion, up from around $2.08 trillion a year earlier.

CEO Nicolai Tangen pointed to a broad surge in global equities as the primary driver of returns, with US tech stocks making the largest contribution, alongside gains in financial shares. He noted that the portfolio held up despite higher US tariffs and also benefited from improving performance in renewable energy infrastructure assets.

Tangen described 2025 as a period marked by persistent volatility and unexpected developments. Nonetheless, resilient corporate profits, enthusiasm surrounding artificial intelligence, and interest rate reductions by central banks helped lift the fund’s equity holdings over the year.

“U.S. technology stocks contributed most to the positive return, driven mainly by the largest technology companies,” he said.

Roughly 40% of the portfolio managed by NBIM is allocated to US-listed stocks. Among its largest positions are a 1.3% holding in Nvidia, a 1.2% stake in Apple, and a 1.3% interest in Microsoft. Beyond equities, the fund also deploys capital into bonds, property, and renewable energy infrastructure.

Listed shares remain the dominant asset class, accounting for more than 71% of total assets — around $1.6 trillion in market value — and delivered a robust 19.3% return over the past year.

The strongest performance after equities came from the fund’s unlisted renewable energy infrastructure investments, which posted an 18.1% gain. During the year, the fund expanded its exposure to clean power projects, including a stake in Germany’s largest electricity transmission grid operator.

Meanwhile, fixed income holdings — representing just over 26% of assets, or about $594 billion — generated a 5.4% return. The fund’s unlisted real estate portfolio recorded a more modest increase of 4.4% over the same period.

The $2 trillion-plus fund is managed by Norges Bank Investment Management (NBIM), which invests surplus oil and gas revenues on behalf of the Norwegian people. Established in the 1990s, the vehicle now holds positions in more than 7,200 companies across 60 countries and owns about 1.5% of all listed equities worldwide.