Norway fund shifts Israeli holdings

Norway’s sovereign wealth fund says it sold its Israeli holdings amid the Gaza crisis, moving toward tighter in‑house oversight.

Norway Sells Israeli Shares Amid Gaza Crisis

Norway’s Government Pension Fund Global said it sold its shares in 11 Israeli companies, reducing its exposure as it reassesses holdings amid the Gaza crisis. The fund, which manages Norway’s oil and gas profits, reported investments in 61 Israeli companies at the end of the first half. It said it sold all holdings in firms not included in the Finance Ministry’s equity benchmark index and will move remaining Israeli investments that were managed by external managers in-house.

CEO Nicolai Tangen said the moves were taken in response to extraordinary circumstances and to simplify how the fund is run in a country at war. He noted that conditions in the West Bank and Gaza have deteriorated and that the fund will strengthen its due diligence as a result. The Oil Fund owns about one and a half percent of shares worldwide across roughly 9,000 companies.

The move shows how large public funds are weaving ethics into risk management. By shrinking its abroad footprint, the Oil Fund sends a signal that humanitarian concerns can steer portfolio choices. Bringing Israeli holdings in-house could raise short-term costs but may improve oversight and consistency. The decision also tests the balance between fiduciary duty and political sentiment, and could influence how other investors view exposure to regions caught in conflict.

If this trend continues, public funds may increasingly use political realities to shape corporate behavior, potentially reshaping capital flows long after the news cycle moves on.

Highlights

The story will unfold as funds weigh ethics against returns and access to markets.