As of June 30, Norway's sovereign wealth fund was valued at NOK 19,586 billion. At the reporting date, this amounted to approximately USD 1.91 trillion.

Compared to the end of 2024, this represents a decline of NOK 156 billion or USD 15.2 billion. At the end of the first quarter, the decline was still 415 billion kroner.

In the first half of the year, the fund managed by Norges Bank generated an investment gain of 698 billion Norwegian kroner ($68.3 billion), according to a statement released by Norges Bank Investment Management (NBIM) on Tuesday.

Strong Krone Causes Loss in Value

The krone appreciated against several major currencies in the first half of the year, contributing to a loss in value of NOK 1,010 billion for the fund. In the first half of the year, government inflows into the fund amounted to NOK 156 billion after expenses.

The fund's total return for the period January to June was 5.7 percent, which was 0.05 percentage points below the return on the fund's benchmark index.

«The result is attributable to good returns on the stock market, particularly in the financial sector», said NBIM CEO Nicolai Tangen.

All Asset Classes in Positive Territory

The fund invests the Norwegian government's revenues from oil and gas production and is one of the world's largest investors. It owns an average of around 1.5 percent of all globally listed shares. Bonds, real estate, and renewable energy projects are also part of the portfolio.

The return on equity investments was 6.7 percent in the first half of the year, while fixed-income securities yielded 3.3 percent, unlisted real estate 4.0 percent, and unlisted renewable energy infrastructure projects 9.4 percent.

In the first half of the year, financial stocks generated a return of 16.5 percent and accounted for 17.0 percent of equity investments. European banks made the largest contribution to this return, driven by expectations of higher public spending and continued solid profitability, the report continues. Telecoms (+13.3 percent) and utilities (+12.4 percent) also made strong positive contributions, while healthcare (-2.9 percent) was the weakest performer.

More than Two-Thirds in Equities

At the end of the first half of the year, the allocation was 70.6 percent equities, 27.1 percent bonds, 1.9 percent real estate, and 0.4 percent energy infrastructure.

In the bond market, US Treasuries, which account for just under a third of fixed-income investments, delivered a negative return of 0.4 percent due to the weaker dollar against the krone. Euro bonds yielded 8.3 percent and Japanese bonds 1.6 percent.

NBIM had already announced on Monday that it would review its investments in Israel due to the situation in Gaza and the West Bank. Parts of the portfolio in the country were sold and contracts with external asset managers who manage Israeli investments were terminated.