2024 Performance Overview
On February 25, 2025, Norges Bank Investment Management published the Government Pension Fund Global (GPFG) Annual Report for 2024, reporting a 13.1% return for the year. The fund added 3,985 billion kroner to its total value, reaching 19,742 billion kroner by year-end 2024.
Equities returned 18.2% in 2024, fixed income 1.3%, and unlisted real estate -0.6% in 2024. Unlisted renewable energy infrastructure underperformed at -9.8%, mainly due to rising capital costs and lower returns from offshore wind projects.
GPFG maintained a 71.4% equity allocation as of December 31, 2024, benefiting from strong technology stock gains but increasing exposure to market volatility. Fixed income holdings accounted for 26.6% as of 2024, while unlisted real estate and renewable energy made up 1.8% and 0.1%, respectively. The fund underperformed its benchmark by 0.45 percentage points in 2024, largely due to losses in real estate and renewable energy infrastructure.
Strategic Investment Outlook for 2025
To navigate global market uncertainty in 2025, GPFG will maintain diversification across equity sectors, ensuring a balance between high-growth industries and defensive stocks. While healthcare and consumer staples were strong performers in 2024, the fund will monitor these sectors for potential opportunities in 2025 rather than committing to increased allocations.
Fixed Income and Real Assets
GPFG aims to optimize its fixed income portfolio in 2025, assessing opportunities in corporate bonds and emerging market debt based on macroeconomic conditions. Corporate bonds returned 4.8% in 2024, and the fund will continue focusing on high-quality issuances in 2025 while selectively considering sovereign debt from emerging markets.
Following weak real estate returns in 2024, GPFG will evaluate its property strategy in 2025, prioritizing logistics, office spaces, and urban development projects where pricing has adjusted. Infrastructure investments will target assets with long-term stability in key global markets in 2025.
Renewable Energy and Risk Management
Despite renewable energy losses in 2024, GPFG remains committed to expanding its renewable energy investments in 2025, particularly in solar and offshore wind projects. The fund continues to explore partnerships and investment opportunities in long-term sustainable energy infrastructure in 2025 across key regions.
With 70% of assets allocated to equities as of December 31, 2024, Norges Bank is enhancing risk assessment measures in 2025, focusing on market volatility, economic slowdowns, and geopolitical risks, rather than AI-specific fluctuations.
Key Highlights
- December 31, 2024: Fund value reached 19,742 billion kroner, up 3,985 billion kroner from 2023.
- 2024: 13.1% return, with equities up 18.2%, fixed income 1.3%, and real estate -0.6%.
- 2024: Technology stocks returned 35.1%, while basic materials declined -7.3%.
- 2025: Diversified equity exposure, monitoring defensive stocks for stability.
- 2025: Ongoing assessment of corporate bonds and emerging market debt.
- 2025: Continued focus on logistics, office spaces, and real estate market corrections.
- 2025: Expansion of renewable energy investments, particularly solar and offshore wind.
