Norway's strengthened krone causes sovereign wealth fund to shrink
"The result is driven by good returns in the stock market, particularly in the financial sector," Nicolai Tangen, chief of Norges Bank Investment Management (NBIM), which manages the fund, said in a statement.
For equity investments, the return was 6.7 percent, the fund said.
However, the value of the fund still fell by 156 billion kroner ($15.2 billion) in the same period, as the krone appreciated against main currencies.
READ ALSO:
Why Norway's krone has strengthened against the US dollar
On Monday, the fund
announced it had sold off its holdings in 11 Israeli firms
and that it was terminating contracts with external managers in Israel, as well as changing its guidelines for which Israeli companies it could invest in.
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The move followed a report by newspaper Aftenposten that the fund had invested in Israel's Bet Shemesh Engines, which makes engine parts used in Israeli fighter jets, even as the war in Gaza raged.
The news prompted Norway's prime minister to ask for a review of the Israeli investments.
Tangen confirmed Tuesday that Bet Shemesh was one of the companies that had been sold off, and that the fund expected "to divest from more companies".
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2 days ago
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Norway's strengthened krone causes sovereign wealth fund to shrink
Fuelled by revenue from the oil-rich country's energy exports, the fund is valued at around $1.9 trillion, with investments in more than 8,600 companies spanning the globe. "The result is driven by good returns in the stock market, particularly in the financial sector," Nicolai Tangen, chief of Norges Bank Investment Management (NBIM), which manages the fund, said in a statement. For equity investments, the return was 6.7 percent, the fund said. However, the value of the fund still fell by 156 billion kroner ($15.2 billion) in the same period, as the krone appreciated against main currencies. READ ALSO: Why Norway's krone has strengthened against the US dollar On Monday, the fund announced it had sold off its holdings in 11 Israeli firms and that it was terminating contracts with external managers in Israel, as well as changing its guidelines for which Israeli companies it could invest in. Advertisement The move followed a report by newspaper Aftenposten that the fund had invested in Israel's Bet Shemesh Engines, which makes engine parts used in Israeli fighter jets, even as the war in Gaza raged. The news prompted Norway's prime minister to ask for a review of the Israeli investments. Tangen confirmed Tuesday that Bet Shemesh was one of the companies that had been sold off, and that the fund expected "to divest from more companies".
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Norway sovereign fund drops investments in 11 Israeli companies
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