Norway's Wealth Fund: Balancing Risks and Investments in a Shifting Global Market

Norway's $2.2 trillion wealth fund continues to invest in U.S. Treasury bonds despite concerns about high government debt and geopolitical tensions. The fund, subject to a mandate set by the finance ministry, maintained stable U.S. asset holdings, focusing largely on stocks and bonds. Geopolitical fragmentation and AI corrections pose significant risks.

Norway's wealth fund, the largest in the world with $2.2 trillion, has maintained its significant investment in U.S. Treasury bonds. This decision persists despite rising concerns over high government debt levels both in the U.S. and globally, as well as growing geopolitical risks.

Several Northern European investors, wary of the stability of U.S. assets amid geopolitical tensions, are shifting their investments. However, the Norwegian fund increased its U.S. Treasury holdings to $199 billion by December 2025, aligning with a finance ministry mandate dictating investment allocation.

The fund faces considerable risks from global economic fragmentation and potential AI market corrections, which could lead to significant value losses in stress scenarios. Yet, it still recorded a substantial profit of $247 billion in 2025, driven by technology and financial stocks.

(With inputs from agencies.)