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.

Governance framework

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 GPFG is carried out by Norges Bank. The Ministry has issued provisions on Norges Bank's management in a separate mandate.

Investment Strategy

The GPFG is an instrument for general saving and does not have clearly defined future liabilities. The capital is in its entirety invested abroad in foreign currency. 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.

Strategic Benchmark Index

The investment strategy for the GPFG is expressed through the composition of the Fund’s strategic benchmark index. The Fund's benchmark index is based on leading, easily accessible indices provided by FTSE, Barclays and IPD, respectively.

Current

Report to the Storting:

Further development of the management of the Government Pension Fund

– Norges Bank and Folketrygdfondet have managed the Government Pension Fund Global and the Government Pension Fund Norway, respectively, in a sound manner over time. We will build on that. In this report, the Government proposes new steps to further develop the investment strategy of the two funds, says the Minister of Finance, Siv Jensen.

Report to the Storting:

New climate criterion for the exclusion of companies from the Government Pension Fund Global (GPFG)

The Government will introduce a new criterion to exclude companies whose conduct to an unacceptable degree entail greenhouse gas emissions. Together with a strengthening of active ownership, this represents a responsible investment practice that pays due heed to both the ethical and the financial aspects of climate change, within the role of the Fund as a financial investor, says the Minister of Finance, Siv Jensen.

Report to the Storting:

Expert group to advice on real estate and infrastructure investments

The Ministry of Finance has appointed an expert group to review real estate and infrastructure investments in the Government Pension Fund Global (GPFG). – We are continuously looking at how changes to the investment strategy may improve the return on the Fund, given a moderate level of risk, says the Minister of Finance, Siv Jensen.

More on Government Pension Fund Global (GPFG)

Documents

Meld. St. 21 (2014-2015)

Management of Government Pension Fund in 2014

The Government Pension Fund comprises the Government Pension Fund Global (GPFG) and the Government Pension Fund Norway (GPFN). The Funds are managed by Norges Bank and Folketrygdfondet, respectively, under mandates set by the Ministry of Finance.

Contact

The Asset Management Department

Phone: +47 22 24 41 63
Address: Postboks 8008 Dep, 0030 Oslo