Government Pension Fund Global (GPFG)

Large state revenues from the petroleum activities have resulted in substantial financial assets in the GPFG. The Fund was established in 1990 as a fiscal policy tool to underpin long-term considerations in the phasing in of petroleum revenues into the Norwegian economy. Long-term, sound management of the Fund helps to ensure that both present and future generations can benefit from Norway’s petroleum wealth.

The GPFG is an instrument for general saving and does not have clearly defined future liabilities. Fund capital is not earmarket for pensions or other specific purposes. The investment objective is to maximise the purchasing power of the fund capital, given a moderate level of risk. The adoption of responsible investment practices supports this objective.

The Management of the Government Pension Fund in 2013 More on the GPFG in the annual report to the Storting
 

News:

A sound and responsible management of the Government Pension Fund

"The Government is today presenting a report to Parliament (Storting) on the management of the Government Pension Fund in 2013. - The Fund has served us well and it gives important contributions to the financing of our welfare state", says Minister of Finance Siv Jensen.

New decisions about the Government Pension Fund Global

The Ministry of Finance has decided to exclude the companies Sesa Sterlite, Africa Israel Investments and Danya Cebus from the Government Pension Fund Global (GPFG).

Report from the Strategy Council on Responsible Investment

The Strategy Council today presented a report on the GPFG's strategy for responsible investments. – The Council offers several recommendations on how we can strengthen the Fund's efforts further, says Minister of Finance Siv Jensen.

Mandate for the review of active management of GPFG

The Ministry plans to undertake a review of Norges Bank’s management of GPFG, to be presented to the Parliament in the spring of 2014. An important part of the review will be a report made by a small group of acknowledged experts with competencies both from academia and asset management practice.

Fund performance (GPFG)

The return on the GPFG in 2013 was 15.9 per cent, measured in the currency basket of the Fund. When measured in Norwegian kroner, the return on the Fund was 25.1 per cent. The difference between the return in Norwegian kroner and in the currency basket of the Fund was caused by depreciation of the Norwegian krone relative to the currency basket of the Fund over this period. However, the return in international currency is the relevant measure with regard to developments in the international purchasing power of the Fund.

Market value and capital inflow (GPFG)

The market value of the GPFG rose 1,222 billion to 5,038 billion Norwegian kroner during the course of 2013. Return on the Fund accounted for 692 billion, whilst changes in the Norwegian krone exchange rate, when taken in isolation, entailed an increase in value of 291 billion. The inflow of new capital to the Fund was 241 billion kroner. In excess of 2 billion kroner of the capital inflow were used to cover Norges Bank’s management costs in 2012.

Strategic benchmark index of the GPFG

The GPFG's investments are spread across several asset classes. The long-term investment strategy entails that 60 percent of the fund capital is invested in equities. The remaining capital is invested in fixed income and real estate. Real estate investments may account for up to 5 percent of the fund. At the end of 2013, 61.7 per cent of the Fund was invested in equities, 37.3 per cent in fixed-income securities and 1.0 per cent in real estate.

Investment Strategy of the GPFG

The investment strategy of the GPFG has been developed over time, based on comprehensive professional assessments. This has ensured broad support for important aspects of the investment strategy.

Governance framework for the GPFG

The Storting has, in the Government Pension Fund Act, made the Ministry of Finance responsible for the management of the Fund. Operational management of the Government Pension Fund Global (GPFG) is carried out by Norges Bank.

Reports and letters submitted to the Ministry

More documents about this subject

Contact information

Asset Management Department

Telephone: +47 22 24 41 63
Fax: +47 22 24 95 91

Address

The Ministry of Finance
Asset Management Department
P.O. Box 8008 Dep
0030 Oslo
Norway

Old Government Building: Stairway

More about the Government Pension Fund Global (GPFG)

Contact information

Asset Management Department

Telephone: +47 22 24 41 63
Fax: +47 22 24 95 91

Address

The Ministry of Finance
Asset Management Department
P.O. Box 8008 Dep
0030 Oslo
Norway