Norway's $2.1 trillion sovereign wealth fund, the world's largest, has no intention of reducing its substantial US asset holdings, Finance Minister Jens Stoltenberg confirmed to the Financial Times. This decision comes despite growing concerns over the Middle East war, mounting US debt, and suggestions from some in the Norwegian parliament to decrease US allocation.
Stoltenberg emphasized that the fund will continue to be a major investor in US companies, aiming to keep roughly half of its investments in the US. He attributed this strategy to the dynamic nature of the American stock market and its reflection of the US economy's strength. This stance contrasts with some other Northern European investors, such as Sweden's Alecta and Denmark's AkademikerPension, which have either sold or are in the process of selling their US Treasuries due to fiscal risks and geopolitical tensions.
Despite acknowledging concerns like high government debt levels, persistent inflation, and potential stock market overvaluation, Stoltenberg stated that the dominance of US capital markets makes significant exposure unavoidable for large global funds. As of late 2025, 52.9% of the fund's assets were invested in the US across equities, bonds, and property, an increase from 52.4% six months prior. The fund's US Treasury holdings alone increased to $199 billion (9.4% of total investments) by December 31, 2025, from $181 billion (9.2%) in June 2025.
Norges Bank, which manages the fund, also recently proposed reducing the government share in its bond index from 70% to 50% within its fixed-income portfolio. This would shift over 1,000 billion Norwegian Krone out of government bonds and into a broader market index to manage systemic public debt risks and geopolitical exposure. However, this proposal is a strategic adjustment to the fund's fixed-income assets and does not imply a reduction in overall US exposure, especially given the fund's mandate to rebalance and invest significant inflows into fixed income.
Overall, the fund reported a 2025 profit of 2.36 trillion crowns ($247 billion), with a 15.1% return on investment. While concerns about global economic fragmentation (which could lead to a 37% drop in value) and AI correction (a potential 35% drop) persist, the fund's leadership, including CEO Nicolai Tangen, remains committed to its finance ministry-set mandate, which guides its US investment levels.
