Norges Bank has published prepared remarks by Norges Bank Investment Management chief Nicolai Tangen for a parliamentary hearing on the Government Pension Fund, setting out NBIM's strategy through 2028. The speech places artificial intelligence at the centre of operations and risk work, highlights rising concentration risk from large US technology holdings, and points to a new approach for real estate together with faster expansion in unlisted renewable energy infrastructure. Tangen said all 680 employees use artificial intelligence daily and that internal reporting already shows productivity gains above the 20 percent target. Measures including artificial intelligence reduced trading costs by 30 percent between 2023 and 2025, equal to NOK 4.8bn. On the investment side, the seven largest US technology companies generated NOK 1,614bn over the past five years, but the top 10 holdings represented 21.3 percent of the fund's equity investments at end-2025, which he described as an unprecedented concentration risk for the fund. Fund value rose 15 percent in 2025 to more than NOK 21,000bn, while relative return was minus 0.28 percentage points for a third consecutive negative year, mainly because real estate lagged the market. NBIM therefore changed its real estate strategy in 2025 from concentrating on a few cities to a sector-based approach including offices, logistics and data centres. In unlisted renewable infrastructure, 2025 saw major commitments that tripled capital committed, including stakes in two North Sea offshore wind projects and in TenneT Germany. Current exposure stands at 0.4 percent of fund value, with committed projects expected to take that to 1 percent by 2030 against a 2 percent mandate limit.
Norges Bank 2026-05-05
Norway's Norges Bank sets out NBIM strategy to 2028 with AI push property reset and warning on tech concentration risk
Norges Bank has published remarks by Norges Bank Investment Management chief Nicolai Tangen outlining the fund’s strategy to 2028, centred on extensive use of artificial intelligence, management of rising concentration risk from large United States technology holdings, and a revised approach to real estate and unlisted renewable energy infrastructure. AI has delivered productivity gains above a 20 percent target and cut trading costs by 30 percent between 2023 and 2025, while the fund’s value rose 15 percent in 2025 to more than NOK 21,000bn but underperformed its benchmark for a third year, mainly due to real estate. NBIM has shifted to a sector-based real estate strategy and tripled commitments to unlisted renewable infrastructure, with exposure at 0.4 percent of fund value and expected to reach 1 percent by 2030 within a 2 percent mandate limit.