Norway’s Wealth Fund Raises U.S. Treasury Holdings in Second Half of 2025

Norway’s $2.2 trillion sovereign wealth fund increased its holdings of U.S. Treasuries in the second half of 2025, raising the value to $199 billion, or 9.4% of total assets, as of Dec. 31. The fund’s overall allocation to U.S. assets climbed to 52.9% at year-end, even as some large Northern European investors have signaled wariness about U.S. assets amid geopolitical tensions.

Key Points

Norway’s sovereign wealth fund increased U.S. Treasury holdings to $199 billion, or 9.4% of its investments, as of Dec. 31, 2025.
Overall allocation to U.S. assets rose to 52.9% at the end of 2025, up from 52.4% six months earlier, affecting equities, bonds and property exposure.
Some large Northern European investors have signaled caution on U.S. assets amid geopolitical tensions; Sweden’s Alecta and Denmark’s AkademikerPension have sold or are selling U.S. Treasuries.

The value of U.S. Treasuries held by Norway’s $2.2 trillion sovereign wealth fund rose during the second half of 2025, according to the fund’s latest data. As of December 31, Norges Bank Investment Management held $199 billion in U.S. Treasuries, representing 9.4% of the fund’s total investments.

That contrasts with the position at mid-year, when U.S. Treasuries were valued at $181 billion and made up 9.2% of the fund’s portfolio as of June 30. Over the past five years, the fund’s holdings of U.S. Treasuries have increased in both absolute value and as a share of total investments.

Historic year-end figures show U.S. Treasuries accounted for 6.9% of the fund in 2021, worth $100 billion; 8% in 2022, worth $104 billion; 8.4% in 2023, worth $132 billion; and 8.7% in 2024, worth $158 billion. The most recent increase continues that trajectory into 2025.

Overall exposure to the United States across equities, bonds and property reached 52.9% of the fund’s assets at the end of 2025, up from 52.4% six months earlier. The fund did not provide a public rationale for the change in its U.S. Treasuries holdings.

Some large Northern European investors have recently expressed greater caution about holding U.S. assets amid geopolitical tensions, and pension chiefs said last week that this sentiment is contributing to a wider move away from the U.S. market. Sweden’s Alecta and Denmark’s AkademikerPension said they had sold or were in the process of selling their U.S. Treasuries, in contrast to the Norwegian fund’s increased U.S. holdings.

Norges Bank Investment Management manages the Norwegian state’s revenues from oil and gas production, investing those proceeds abroad in bonds, stocks, property and unlisted renewable energy projects. The fund is equivalent to $385,000 for every Norwegian man, woman and child and helps finance roughly 25% of the government’s fiscal budget.

Fund chief executive Nicolai Tangen is scheduled to present the fund’s annual results on Thursday at 0900 GMT.

The reported pattern - steady growth in the value and proportion of U.S. Treasuries held by the fund over recent years - stands alongside a broader divergence among major Northern European institutional investors about exposure to U.S. assets.

Risks

Geopolitical tensions have prompted caution among some major Northern European investors regarding U.S. assets, introducing potential volatility for holders of U.S. securities - impacting sovereign wealth funds, pension funds and fixed-income markets.
The Norwegian fund did not provide a rationale for its increased U.S. Treasury holdings, creating uncertainty about the strategic drivers behind the portfolio shift - relevant to markets and policy observers.
Divergent strategies among large institutional investors - with some reducing U.S. Treasury exposure while Norway’s sovereign fund increases it - could influence demand dynamics in global bond markets and affect fixed-income pricing.

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