The Government Pension Fund
The purpose of the Government Pension Fund is to facilitate government savings to finance rising public pension expenditures, and support long-term considerations in the spending of government petroleum revenues. A sound long-term management of the Fund contributes to intergenerational equity, by allowing both current and future generations to benefit from the petroleum revenues.
The framework for the Government Pension Fund and the management of fund assets are laid down by Act of Parliament and guidelines with supplementary provisions.
The Ministry of Finance holds the overall responsibility for the management of the Government Pension Fund. The operational management of the GPFG and GPFN is carried out by Norges Bank and Folketrygdfondet, respectively, under mandates laid down by the Ministry.
The investment strategy for the Fund is based on long-term considerations of different investment choices. Good financial return over time is deemed to be contingent on a sustainable development in economic, environmental and social terms, and on well-functioning, efficient and legitimate financial markets.
Related topics and insights
Report from a committee tasked with reviewing the ethical framework for the Norwegian GPFG: Values and responsibility – the ethical framework for the Government Pension Fund Global
15/06/2020: Today, the Committee mandated to review the ethical guidelines for Norway’s sovereign wealth fund publishes its proposals for amendments to the Guidelines for observation and exclusion from the Government Pension Fund Global and to the Management mandate for the Government Pension Fund Global. The committee presented its report to the Norwegian Minister of Finance Jan Tore Sanner.
Report to the Storting:
Excludes exploration and production companies from the Government Pension Fund Global
The Government is proposing to exclude companies classified as exploration and production companies within the energy sector from the Government Pension Fund Global to reduce the aggregate oil price risk in the Norwegian economy.
Meld. St. 20 (2018-2019)
The purpose of the Government Pension Fund is to support long-term considerations in the government’s spending of petroleum revenues, as well as saving to finance pension expenditure under the National Insurance Scheme.
NOU 2020: 7
In April 2019, the Norwegian government appointed a committee chaired by Professor Ola Mestad to review the Guidelines for observation and exclusion of companies from the Norwegian Government Pension Fund Global (GPFG). The Committee’s report (NOU 2020:7) was submitted to the Ministry of Finance on 15 June, 2020.