The Government Pension Fund

Large petroleum revenues have resulted in substantial financial assets in the Government Pension Fund. The purpose of the Government Pension Fund is to facilitate government savings necessary to meet the rapid rise in public pension expenditures in the coming years, and to support a long-term management of petroleum revenues.

The Government Pension Fund was established in 2006 and consists of two parts: "The Government Pension Fund Global", which is a continuation of the Petroleum Fund, and "The Government Pension Fund Norway", which was previously known as the National Insurance Scheme Fund. Revenues in the Government Pension Fund Global consist of the Government's total income from petroleum activities, and the return on the Fund's investments. The Ministry of Finance is responsible for the management of the Fund. The operational management of the Government Pension Fund Global is delegated to Norges Bank. The operational management of the Government Pension Fund Norway is delegated to the National Insurance Scheme Fund. The management is carried out in accordance with regulations laid down by the Ministry of Finance.

The government pension fund seminar on active management

The Ministry of Finance arranged a seminar on January 20, 2010, to discuss the future role of active management of the Government Pension Fund Global (Statens pensjonsfond utland).

Illustration: Government Pension Fund Global

Reports on active management of the Government Pension Fund Global

The Ministry of Finance has made public reports that have been received in connection with the work of evaluating active management of the Government Pension Fund Global.

Report no. 20 to the Storting (2008–2009)

The management of the Government Pension Fund in 2008

On 3 April 2009 the Government presented its Report to the Storting on the management of the Government Pension Fund in 2008. This page contains relevant documents translated to English.

National budget 2009 - Chapter 5

The purpose of the Government Pension Fund is to support government savings to finance the pension expenditure of the National Insurance Scheme and long-term considerations in the spending of government petroleum revenues. A policy based on long-term management of petroleum wealth reflects a fundamental social perspective and is an overarching priority for the Government. It implies that this wealth can benefit all generations, whilst at the same time making an important contribution to stability in output and employment.

Comment on U.S. Commitment to an Open Investment Environment

In a comment to the proposal for regulations of the Committee on Foreign Investment in the United States (CFIUS), the Ministry of Finance welcomes the U.S. commitment to an open investment environment.

Statement in the US Congress on the Government Pension Fund - Global

In the hearing on "Foreign Government Investment in the U.S. Economy and Financial Sector" in the U.S. House of Representatives on 5 March 2008, Director General Martin Skancke spoke on the management of the Government Pension Fund - Global and Norway's position in the international debate on Sovereign Wealth Funds.

Norway’s position in the debate on Sovereign Wealth Funds

The international debate has revealed some scepticism towards Sovereign Wealth Funds (SWF). Norway’s Government Pension Fund – Global is a tool to manage our petroleum wealth wisely and avoid the “resource curse”. From this it follows that the Fund is large and that it is invested overseas. A sensible management of oil-producing countries’ petroleum wealth in well-functioning financial markets is in everyone’s interest.

The Management of the Government Pension Fund - Global

Investment Strategy

The Ministry of Finance’s principal guidelines for the two funds is the key driver of the Fund’s risk/return profile.

Performance of the Government Pension Fund

Key figures, evaluation and reports by Norges Bank.

Provisions on the management of the Government Pension Fund

The Government Pension Fund Act assigns the management of the Fund to the Ministry of Finance. The operational management of the Government Pension Fund – Global is carried out by Norges Bank. The operational management of the Government Pension Fund - Norway is carried out by Folketrygdfondet. The management regime is governed by Regulations , guidelines containing supplementary provisions and management agreements.

Ethical Guidelines for the Government Pension Fund Global

Ethical guidelines were established for the Government Pension Fund – Global on 19 November 2004. The guidelines build on recommendations made by the government-appointed Graver Committee which presented its report in summer 2003.

The Norwegian Experience

The oil age in Norway has spanned 30 years and it appears that it will continue for many years ahead. Petroleum activities give Norway an economic base that is not available to many other countries. But it also presents us with challenges. The establishment of the Government Pension Fund and the spending guidelines for petroleum revenues together with the monetary policy regulation are intended to meet these challenges.