The world’s largest wealth management fund, Norges Bank Investment Management, continued to remove Israeli firms from its portfolio on Tuesday said an Anadolu report. On Monday, the $2.2-trillion fund announced that it excluded 11 Israeli firms from its portfolio as of June 30.
The fund’s statement to Anadolu on Tuesday showed that there are only 44 Israeli firms in the fund’s portfolio, as the fund said: “Eleven of the divestments are related to the decision made last week. The remainder (of six firms) are regular investment decisions made by our portfolio managers.”
On Monday, CEO of the fund Nicolai Tangen said: “These measures were 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. In response, we will further strengthen our due diligence.”
Tangen also said the measures the fund is taking will simplify the management of its investments in this market and reduce the number of companies that the fund and the Council on Ethics monitor.
The fund also stated on Monday that it has been in dialogue with many firms operating in war and conflict zones, noting: “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.”
“In the autumn of 2024, we further intensified the monitoring of our investments in Israeli companies. As a result, we have sold our investments in several Israeli companies,” it added.
As of the end of June, the fund’s Israeli portfolio was worth $2.24 billion, with 61 companies. The firm has removed a total of 17 Israeli companies from its portfolio as of Tuesday, which had a total value of $143.3 million.
The firms removed from the portfolio include Amos Luzon, Azorim, Bet Shemesh, Delek Automotive, El Israel Airlines, Energix, Etoro Group, Max Stock, Meshulam Levinstein, Perion Network, Priortech, Rami Levy Chain Stores, Reit, Retailors, Scope Metals, Sella Capital, and Turpaz Industries.
As of Tuesday, the amount of the fund’s Israeli portfolio was $2.09 billion.
The bank also said on Monday that all investments in Israeli companies that are not in the equity benchmark index will be sold as soon as possible.
“All investments in Israeli companies that have been managed by external managers will be moved inhouse and managed internally. We are terminating contracts with external managers in Israel,” it added.
On Tuesday, Tangen said in a press conference that the fund is planning to withdraw from more companies in Israel.
Speaking at a party leaders gathering of a televised debate late Monday, Norway’s Prime Minister Jonas Gahr Store defended the fund’s decision to terminate contracts, but said he did not want to withdraw the fund completely from Israel.
Earlier, the Norwegian daily Aftenposten reported that the Israeli company Bet Shemesh Engines, one of the 11 companies that is now divested from the Norwegian fund, has produced aircraft engines and also maintained aircraft for the Israeli military. The Norway’s wealth fund used to have an ownership stake in the company.
Pressing the prime minister during the debate, Socialist Left Party leader Kirsti Bergsto said the fund “must completely” withdraw from Israel.
“Do not invest in a genocide. Withdraw your investments,” she said, adding that it is right time that the world really stands up and “says that enough is enough.”
“The genocide must stop,” added Bergsto.
In response, however, Store defended the decision, adding that he did not want to withdraw the fund completely from Israel. “I do not think it is right for the fund. What we are doing, withdrawing the fund through a political decision.”
Israel is facing mounting condemnation for its genocidal war on Gaza, where it has killed nearly 61,600 victims since October 2023.
Last November, the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former Defence Minister Yoav Gallant for war crimes and crimes against humanity in Gaza. Israel also faces a genocide case at the International Court of Justice for its war on the enclave.
