Article | Last updated: 12/05/2021 | Ministry of Finance
The strategy is defined in the Fund mandate and reflected in, inter alia, the composition of the benchmark index and risk limits established by the Ministry of Finance.
The benchmark is divided into equities (60 percent) and fixed income instruments (40 percent), and into two geographical regions; Norway (85 percent) and the Nordic region excluding Iceland (15 percent). The strategic benchmark composition reflects the investment preferences and risk tolerance on part of the owner, represented by political authorities.
Folketrygdfondet may, within certain limits, deviate from the benchmark index. The purpose of such deviations is to facilitate a cost-effective execution of the management assignment and to improve the performance of the Fund.