Norwegian Wealth Fund Ends Israeli Investments

Norway’s sovereign wealth fund, valued at $2 trillion, has terminated its contract with asset managers overseeing its Israeli investments. This decision comes as the fund opts to divest some of its domestic portfolio due to the ongoing situation in Gaza and the West Bank.

The fund’s announcement follows an emergency review initiated last week after media reports revealed that it had increased its holdings in the Israeli Jet Engine Group, which supports Israeli military operations, including maintenance for fighter jets.

According to the fund, “All investments in Israeli companies managed by external managers will be transferred and managed internally.” As of June 30, the fund had stakes in 61 Israeli firms and recently divested 11 of those shares, though it did not disclose the specific companies involved.

“We have fully exited these positions,” the fund confirmed, also noting its ongoing assessment of other Israeli companies for possible sales. The review aims to enhance its due diligence processes.

“Currently, fund investments in Israel include only those companies listed on the Equity Benchmark Index, but not all Israeli firms featured in the Index,” a representative stated.

The wealth fund, which holds shares in 8,700 companies across the globe, reportedly had stakes in 65 Israeli companies at the end of 2024.

In the previous year, it sold off shares in an Israeli energy firm and a telecommunications company due to ethical concerns. Its Ethics Watchdog is reconsidering its positions in five banks as well.

Interestingly, the Norwegian Parliament turned down a proposal in June to require the fund to divest from all companies operating in the occupied Palestinian territories.