Press release | Date: 08/01/2016 | Ministry of Finance| No: 2/2016
The Government has today appointed a Committee to assess the equity portion of the Government Pension Fund Global (GPFG). The Committee will be chaired by Senior Economist and Adjunct Professor Knut Anton Mork.
The objective of the GPFG’s investments is to seek the highest possible return, within a moderate level of risk. The Fund’s investment strategy has been developed over time on the basis of thorough assessments and analyses.
The GPFG has increased considerably in value since the first capital contribution in 1996. The size of the Fund is now equivalent to more than two and a half times the GDP of the mainland economy.
- The choice of equity portion is the most important decision in terms of the expected risk and return of the Fund in the long run. The Committee comprises individuals with extensive expertise and knowledge within finance and economics as well as broad understanding of the role of the Fund in the Norwegian economy and in Norwegian politics, says the Minister of Finance, Siv Jensen.
Equities were included in the benchmark index for the GPFG in 1998 with an initial portion of the benchmark index of 40 percent. In 2007, a decision was made to increase the equity portion to 60 percent. Bonds and real estate account for the remaining 40 percent.
The Committee shall analyse expected risk and return in the Fund for different equity portions, and may recommend changes to the equity portion. In assessing the equity portion, the Committee shall, inter alia, consider the Fund’s objective, time horizon and size, as well as expected outflows from the Fund. Furthermore, the Committee shall assess whether a change in the equity portion should have any implications for other main aspects of the investment strategy, such as the composition of the equity and fixed-income benchmarks.
The Committee shall submit its report by 15 October 2016.
The Government intends to address the matter of the equity portion of the GPFG in the Fund report to be submitted to the Storting in the spring of 2017.
Composition of the Committee:
- Knut Anton Mork, Senior Economist and Adjunct Professor (Chairperson of the Committee)
- Harald Magnus Andreassen, Chief Economist
- Hilde C. Bjørnland, Professor
- Harald Espedal, Investor
- Kristin Halvorsen, Director
- Espen Henriksen, Associate Professor
- Sigbjørn Johnsen, County Governor
- Kari Olrud Moen, Group executive vice president
- Karin Thorburn, Professor