OSLO, Sept 9 (Reuters) - Norway's Finance Minister Jens

Stoltenberg said on Tuesday he hopes the country's $2 trillion

sovereign wealth fund, the world's largest, can maintain its

current investment policy in which about half the assets are

invested in the U.S.

President Donald Trump's administration said last week it

was "very troubled" by the Norwegian fund's divestment of U.S.

construction equipment group Caterpillar ( CAT ), and that it

was engaging with Norway's government on the issue.

Based on recommendations from an ethics watchdog, the fund

last month said it had sold its Caterpillar ( CAT ) stake due to the

company's supply to Israel of bulldozers used in the occupation

of Gaza and the West Bank.

Some Trump allies such as Republican Senator Lindsey Graham

have said Norway and its fund could risk U.S. sanctions over the

decision, including increased trade tariffs or visa travel

restrictions on individuals.

"U.S. authorities are well aware of the rules surrounding

the Norwegian sovereign wealth fund and its ethics guidelines,"

Stoltenberg told reporters, adding that recommendations to

divest were not subject to Norwegian government review.

"We don't want to politicise this type of individual

decisions, we want to continue to have this system that allows

us to have a large investment fund where half of the assets ...

are invested in the United States," Stoltenberg said.

Caterpillar ( CAT ) has not commented on the wealth fund's

divestment.