OSLO, Norway (AP) – Norway’s sovereign wealth fund, officially known as the Government Pension Fund Global, announced on Monday its decision to divest shares in 11 Israeli companies. This action is part of a strategic reduction of the fund's investments in Israel, prompted by what the fund's management described as a "serious humanitarian crisis" in Gaza.

The Oil Fund, which manages Norway’s profits from its oil and gas industry, reported that as of the first half of this year, it had investments in 61 Israeli companies. In light of the ongoing conflict and deteriorating conditions in Gaza, the fund’s management made the decision last week to sell all investments in these 11 firms that do not appear on the Norwegian Finance Ministry’s equity benchmark index. The completion of these sales has been underway in recent days.

While the fund did not disclose the names of the companies involved, it indicated that it would also be taking further actions by moving all investments in Israeli companies managed by external entities in-house. As part of this restructuring, the fund is terminating contracts with external managers based in Israel.

Nicolai Tangen, the CEO of Norges Bank Investment Management, which oversees the fund, emphasized that the measures taken are a response to extraordinary circumstances. He stated, "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." Tangen also noted that the fund will enhance its due diligence concerning its investments in this region.

Moreover, Tangen expressed that these latest moves would streamline the management of their investments in Israel and decrease the number of companies subject to scrutiny by the fund's council on ethics. The proactive approach reflects the fund's heightened vigilance regarding its investments in the context of escalating geopolitical tensions.

In the previous fall, the fund's management had already intensified its monitoring of Israeli investments and had divested from "several" companies as a result of its ethical considerations.

The Government Pension Fund Global is one of the largest sovereign wealth funds in the world, currently owning approximately 1.5% of all shares in listed companies globally, with holdings in about 9,000 firms. This diversification signifies the fund's significant role in international markets and highlights its commitment to ethical investment practices.