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
Long-term management in volatile financial markets
– 2018 was a challenging year with weak performance for both funds. Such periods clearly illustrate how important it is to have broad endorsement, a long-term perspective and a thorough understanding of the risk assumed in the management of our joint savings. Financial markets fluctuate, but the management should be stable, says Siv Jensen, Minister of Finance.
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.
Meld. St. 14 (2018–2019)
The accumulation of financial assets in the Government Pension Fund Global (the GPFG) is the result of Norway having managed its oil and gas resources in a sound manner.