Latest news with #Norges Bank Investment Management
Yahoo
17 hours ago
- Business
- Yahoo
Norway's $1.9 Trillion Fund Has Best Quarter Since 2023
(Bloomberg) -- Norway's sovereign wealth fund enjoyed its best quarter since late 2023, returning 6.4% in the second quarter, propelled by stock-market gains. Equities drove the results for the $1.9 trillion fund, at 8.45%, with unlisted infrastructure investments generating 8.1%, Norges Bank Investment Management said in a report on Tuesday. Fixed income and unlisted real estate had a small positive contribution. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms A New Stage for the Theater That Gave America Shakespeare in the Park Norway's wealth fund, the world's largest, owns about 1.5% of listed stocks globally. More than two thirds of the fund is in equities, all outside of Norway. A big chunk of its holdings are in the US, including tech companies such as Apple Inc, Microsoft Corp, Nvidia Corp., Alphabet Inc, Inc and Meta Platforms. The fund's first-half return was 5.7%, missing the benchmark it measures itself against by 5 basis points. European stocks gained the most, at 17.8%, versus just 1.4% for North American stocks. 'The result is driven by good returns in the stock market, particularly in the financial sector,' Chief Executive Officer Nicolai Tangen said. Financial firms returned 16.5% in the first six months of the year and accounted for 17% of the equity investments, NBIM said. The greatest contribution came from European banks, 'driven by expectations of increased public expenditure and further healthy profitability.' Other positive drivers included telecommunication companies and utilities, while health care performed the weakest, the fund said. A stronger currency weighed on the fund, contributing to a drop in its overall value by 0.8% to 19.6 trillion kroner ($1.9 trillion) at the end of the period from the year end. Founded in the early 1990s, NBIM invests the Nordic country's oil and gas revenues abroad for the benefit of future generations. It follows a benchmark index set by the finance ministry and has limited scope for active investing. On equities, it tracks the FTSE Global All Cap index with holdings in about 8,700 listed companies in 44 countries, while the fixed-income portion of the fund follows Bloomberg Barclays indexes, with 70% allocated to government bonds and 30% to corporate securities. The fund has been under pressure lately due to its investments in some companies contributing to Israel's war in Gaza. It's terminating all contracts with external managers in Israel following public outcry, and has divested from 21 Israeli firms in total since the war started. Speaking to reporters on Tuesday, Tangen said he has no plans to step down as CEO, while acknowledging the fund should have acted faster to take back management of those holdings. --With assistance from Stephen Treloar, Kari Lundgren and Rob Dawson. (Updates with 2Q returns, details in sector drivers, from first paragraph) Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results Klarna Cashed In on 'Buy Now, Pay Later.' Now It Wants to Be a Bank The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arab News
a day ago
- Business
- Arab News
Norway sovereign wealth fund drops investments in 11 Israeli firms
OSLO: Norway's sovereign wealth fund said Monday that it was selling its investments in 11 Israeli companies following reports it had invested in an Israeli jet engine maker even as the war in Gaza raged. Nicolai Tangen, chief of Norges Bank Investment Management (NBIM), which manages the fund, said the decision was taken 'in response to extraordinary circumstances.' 'The situation in Gaza is a serious humanitarian crisis. We are invested in companies that operate in a country at war, and conditions in the West Bank and Gaza have recently worsened,' Tangen said in a statement. He said the move would reduce the number of Israeli companies the fund's Council of Ethics needed to supervise. Norway's wealth fund is the biggest in the world with a value of around $1.9 trillion, with investments in more than 8,600 companies spanning the globe. Last week, Norwegian newspaper Aftenposten reported that the fund had invested in Israeli Bet Shemesh Engines Holdings, which makes parts for engines used in Israeli fighter jets. Tangen later confirmed the reports, and said the fund had increased its stake after the Israeli offensive in Gaza began. The revelations led Prime Minister Jonas Gahr Store to ask Finance Minister and former NATO secretary general Jens Stoltenberg for a review. NBIM said it had investments in 61 Israeli companies at the end of the first six months of this year, 11 of which were not in its 'equity benchmark index' — which is set by the finance ministry and used to gauge the wealth fund's performance. NBIM added that it had decided last week that 'all investments in Israeli companies that are not in the equity benchmark index will be sold as soon as possible.' Going forward, 'the fund's investments in Israel will now be limited to companies that are in the equity benchmark index,' it said. NBIM also said that all investments in Israeli companies managed by external managers would be moved in-house, and that it was 'terminating contracts with external managers in Israel.' In addition, NBIM said the finance ministry had asked it to review 'its investments in Israeli companies, and to propose new measures that it deems necessary.' It said it initiated the review and would present its findings before an August 20 deadline. The fund also said that it had 'long paid particular attention to companies associated with war and conflict.' 'Since 2020, we have been in contact with more than 60 companies to raise this issue. Of these, 39 dialogues were related to the West Bank and Gaza,' NBIM said. It said that monitoring of Israeli companies had been intensified in the autumn of 2024, and that 'as a result, we have sold our investments in several Israeli companies.' Speaking at a press conference later Monday, Stoltenberg said he was glad Norges Bank had 'acted quickly.' 'The fund's ethical guidelines stipulate that it shall not invest in companies that contribute to violations of international law by states,' he told reporters. 'Therefore, the pension fund should not hold shares in companies that contribute to Israel's warfare in Gaza or the occupation of the West Bank,' he said. Also on Monday, Norwegian pension fund KLP said it had excluded Israeli company NextVision Stabilized Systems 'from its investments because the company supplies key components for military drones used in the war in Gaza.'
Al Arabiya
a day ago
- Business
- Al Arabiya
Norway sovereign wealth fund drops investments in 11 Israeli firms
Norway's sovereign wealth fund said Monday that it was selling its investments in 11 Israeli companies following reports it had invested in an Israeli jet engine maker even as the war in Gaza raged. Nicolai Tangen, chief of Norges Bank Investment Management (NBIM), which manages the fund, said the decision was taken 'in response to extraordinary circumstances.' 'The situation in Gaza is a serious humanitarian crisis. We are invested in companies that operate in a country at war, and conditions in the West Bank and Gaza have recently worsened,' Tangen said in a statement. He said the move would reduce the number of Israeli companies the fund's Council of Ethics needed to supervise. Norway's wealth fund – also known as the oil fund as it is fueled by vast revenue from the country's energy exports – is the biggest in the world with a value of around $1.9 trillion, with investments in more than 8,600 companies spanning the globe. Last week, Norwegian newspaper Aftenposten reported that the fund had invested in Israeli Bet Shemesh Engines Holdings, which makes parts for engines used in Israeli fighter jets. Tangen later confirmed the reports, and said the fund had increased its stake after the Israeli offensive in Gaza began. The revelations led Prime Minister Jonas Gahr Store to ask Finance Minister and former NATO secretary general Jens Stoltenberg for a review. NBIM said it had investments in 61 Israeli companies at the end of the first six months of this year, 11 of which were not in its 'equity benchmark index' – which is set by the finance ministry and used to gauge the wealth fund's performance. NBIM added that it had decided last week that 'all investments in Israeli companies that are not in the equity benchmark index will be sold as soon as possible.' Ethical guidelines Going forward, 'the fund's investments in Israel will now be limited to companies that are in the equity benchmark index,' it said. NBIM also said that all investments in Israeli companies managed by external managers would be moved in-house, and that it was 'terminating contracts with external managers in Israel.' In addition, NBIM said the finance ministry had asked it to review 'its investments in Israeli companies, and to propose new measures that it deems necessary.' It said it initiated the review and would present its findings before an August 20 deadline. The fund also said that it had 'long paid particular attention to companies associated with war and conflict.' 'Since 2020, we have been in contact with more than 60 companies to raise this issue. Of these, 39 dialogues were related to the West Bank and Gaza,' NBIM said. It said that monitoring of Israeli companies had been intensified in the autumn of 2024, and that 'as a result, we have sold our investments in several Israeli companies.' Speaking at a press conference later Monday, Stoltenberg said he was glad Norges Bank had 'acted quickly.' 'The fund's ethical guidelines stipulate that it shall not invest in companies that contribute to violations of international law by states,' he told reporters. 'Therefore, the pension fund should not hold shares in companies that contribute to Israel's warfare in Gaza or the occupation of the West Bank,' he said. Also on Monday, Norwegian pension fund KLP said it had excluded Israeli company NextVision Stabilized Systems 'from its investments because the company supplies key components for military drones used in the war in Gaza.'
Bloomberg
a day ago
- Business
- Bloomberg
Norway's $1.9 Trillion Wealth Fund Sells Off Israeli Assets
Norway's $1.9 trillion sovereign wealth fund has divested from 11 Israeli companies and is terminating all contracts with external managers in Israel following public outcry over its investments linked to the war in Gaza. Pressure on Norges Bank Investment Management — the official name of the fund — has grown in recent months, reflecting domestic concern over the suffering in Gaza. The fund held stock in some 61 Israeli companies as of the end of June this year, NBIM said in a statement.
Reuters
05-08-2025
- Business
- Reuters
Norway to review sovereign wealth fund's Israel investments
OSLO, Aug 5 (Reuters) - Norway's government said on Tuesday it had ordered a review of its sovereign wealth fund portfolio to ensure that Israeli companies contributing to the occupation of the West Bank or the war in Gaza were excluded from investments. The review followed a report by the Aftenposten daily that said the $1.9 trillion fund had built a stake in 2023-24 in an Israeli jet engine group that provides services to Israel's armed forces, including the maintenance of fighter jets. The fund's investment in the Bet Shemesh Engines Ltd (BSEL) ( opens new tab group is worrying, Norwegian Prime Minister Jonas Gahr Stoere told public broadcaster NRK. "We must get clarification on this because reading about it makes me uneasy," Stoere said. BSEL did not immediately respond to a request for comment. Norges Bank Investment Management (NBIM), which manages the fund, took a 1.3% stake in BSEL in 2023 and raised this to 2.09% by the end of 2024, holding shares worth $15.2 million, the latest available NBIM records show. In light of Aftenposten's story and the security situation in Gaza and the West Bank, the central bank will now conduct a review of NBIM's Israeli holdings, Finance Minister Jens Stoltenberg said on Tuesday. NBIM CEO Nicolai Tangen told NRK that BSEL had not appeared on any lists of recommended exclusions, such as by the United Nations or the fund's own ethics council. Norway's parliament in June rejected a proposal for the sovereign wealth fund to divest from all companies with activities in the occupied Palestinian territories. The fund, which owns stakes in 8,700 companies worldwide, held shares in 65 Israeli companies at the end of 2024, valued at $1.95 billion, its records show. Norway's sovereign wealth fund, the world's largest, has sold its stakes in an Israeli energy company and a telecoms group in the last year, and its ethics council has said it is reviewing whether to recommend divesting holdings in five banks.
