Norwegian sovereign wealth fund: record returns and dramatic sales offensive!

Norwegian sovereign wealth fund: record returns and dramatic sales offensive!

The Norwegian sovereign wealth fund, the largest pension fund in the world, achieved a return of 5.7 percent in the first half of 2025. However, these positive figures are overshadowed by currency effects, which reduced the total value of investments by 156 billion crowns to 19.586 billion crowns (1.646 trillion euros). The decline is mainly due to a stronger Norwegian krone compared to other currencies, such as stern.de reported.

The return on equity investments was 6.7 percent, while the fund holds a total of around 1.5 percent of the world's listed stocks. The majority of these investments are in foreign markets, with more than two-thirds of the holdings invested outside Norway, making the fund significantly exposed to international developments. In addition, financial returns from industries such as financial companies and technology are crucial to the fund's overall success, such as finanzmarktwelt.de supplemented.

Investment focus and ethical guidelines

The Norwegian sovereign wealth fund is based on revenue from the state-owned oil and gas sector and is intended to finance the country's future social spending. However, the fund is subject to strict ethical guidelines regarding human rights and environmental protection. In recent months there have been intense discussions about investing in Israeli companies. In this context, the fund sold shares in eleven Israeli companies and terminated cooperation with external advisors from Israel, which represents an important step in adapting its investment guidelines.

Among the holdings sold was Bet Shemesh Engines, a company that makes engine parts for Israeli fighter jets. CEO Nicolai Tangen has reiterated that this company is among those whose participation has been terminated. Further sales could follow due to the ongoing conflict in the Gaza Strip, increasing pressure on the fund to review and, if necessary, refocus its operations.

Market developments and returns

While the return for the fund was 5.7 percent in the first half of 2025, there was a return of 6.4 percent in the second quarter of 2023, due to gains in the stock sector. The European stock market development in particular, which rose by 17.8 percent, shows the dynamic difference to the North American stock market, which only grew by 1.4 percent. These figures illustrate the fund's dependence on global markets and the different growth rates in different regions.

The Norwegian sovereign wealth fund, founded in the early 1990s, aims to invest oil revenues sustainably abroad. The fund is based on a reference index, which leads to limited scope for active investments. With a clear strategy, the fund should not only generate returns, but also adhere to the ethical standards set by the Norwegian government.