Lutnick: There's no sovereign wealth fund now

Lutnick: There's no sovereign wealth fund now

The Norwegian sovereign wealth fund, the world's largest, has announced its decision to exclude six Israeli companies from its investment portfolio. This move, effective immediately, is a result of the fund's ethical review process, which considers the situation in Gaza and the West Bank [1].

The Norwegian Ministry of Finance stated that the names of the excluded companies will be revealed once the withdrawal process is complete. The ministry also noted that the sale of shares is still ongoing, and the companies will not be named until this process ends. Deputy Chief Executive Trond Grande of the sovereign wealth fund hinted at potential further divestments as part of the ongoing review [1].

Meanwhile, Indonesia's sovereign wealth fund, Danantara, is launching "patriot bonds" to raise as much as 50 trillion rupiah (S$4 billion). The bonds, denominated in rupiah, have a coupon yield of 2% and are being issued in five- and seven-year tranches. Several Indonesian tycoons have agreed to invest between 2 to 3 trillion rupiah apiece in the offering, which aims to fund President Prabowo Subianto's social and economic initiatives, including energy transition and waste management [2].

The U.S. equity market is undergoing significant changes due to the Trump administration's economic strategy, which includes the creation of a sovereign wealth fund modeled after the $8.9 billion equity stake in Intel. This strategy reshapes capital allocation and global competitiveness in tech and manufacturing, with government equity stakes in critical industries [3].

References:
[1] https://www.middleeastmonitor.com/20250819-norwegian-wealth-fund-excludes-6-israeli-companies-from-its-portfolio/
[2] https://www.straitstimes.com/asia/se-asia/indonesias-danantara-sovereign-wealth-fund-taps-top-tycoons-for-its-first-bond-issue-sources
[3] https://www.ainvest.com/news/trump-driven-shift-sovereign-wealth-fund-ambitions-implications-equity-markets-2508/