What does the fund invest in?
The Ministry of Finance has decided that 60 percent of the fund shall be invested in equities, 35–40 percent in fixed-income securities and as much as 5 percent in real estate. All the fund’s investments shall be outside Norway.
Where can the fund invest?
The fund shall have 50 percent of its equity investments in Europe, 35 percent in the Americas, Africa and the Middle East, as well as 15 percent in Asia and Oceania. It shall have 60 percent of its fixed-income investments in Europe, 35 percent in the Americas and 5 percent in Asia and Oceania. Real estate investments shall be spread over different types of sectors, properties and securities in European countries except Norway.
When will the fund start investing in real estate?
In March 2010, NBIM was given a mandate to invest as much as 5 percent of the fund’s capital in real estate. We expect the first investments by the end of 2010.
Does the fund invest in emerging markets?
Yes, the fund invests in equities listed on stock exchanges in countries such as Turkey, Brazil, Mexico, South Korea and Taiwan. The fund also invests in fixed-income securities issued by borrowers in emerging markets, as long as the issuer has a satisfactory credit rating and the security is denominated in an approved currency, such as the euro or US dollar.
Can the fund invest in Norwegian stocks and bonds?
No, the fund’s regulations stipulate that it invest abroad in international currency.
Can the fund invest in private equity?
The fund's equity investments are limited to equities that trade on public stock exchanges. Property investments may be privately held.
Which companies does the fund invest in?
Lists of shareholdings can be found on our website. NBIM does not comment on individual investment decisions.
What is the pension fund’s investment strategy?
The fund follows the investment strategy laid down by the Ministry of Finance. The goal is to have diversified investments that will generate the highest possible return within moderate risk levels. Responsible management of the fund shall safeguard and build financial wealth for future generations. You can read more about the strategy and purpose of the fund on this web site.
Can private citizens invest in the fund?
No
How much has the fund gained or lost?
Information on the fund’s market value and returns can be found on this web site.
Is this the world’s largest fund?
The Government Pension Fund Global is among the world’s largest funds. Many of the world’s largest funds do not disclose their market value or returns, making it difficult to estimate their actual size. The Abu Dhabi Investment Authority is often considered the world’s largest fund.
Is the fund expected to grow?
Estimates of the future market value of the fund can be found on our web site . A thorough deliberation of the topic is provided in the annual National Budget published by the Ministry of Finance.
Who decides which companies are excluded from the fund?
The Ministry of Finance may decide to exclude a company from the fund’s investment universe, based on recommendations from the Council on Ethics. The council will evaluate whether a company or issuer of securities violates the fund’s ethical guidelines. This is regulated by “Management guidelines for the Government Pension Fund Global” §8
What is active and passive management?
Active management means a fund manager makes specific investment decisions to maximise returns and outperform a benchmark index or portfolio. It is the opposite of passive management, when a fund manager seeks to replicate the composition of a benchmark index to match its returns.
An active manager will, for instance, invest in shares that are expected to outperform the market. A passive manager will invest in shares that replicate the shares in a benchmark index. Passive management is also referred to as indexing.
What are the ethical rules for the fund’s investments?
Ethical guidelines for the Government Pension Fund Global are outlined on the Ministry of Finance’s web site.
Who owns the fund?
The legal owner of the Government Pension Fund Global is the Norwegian Ministry of Finance.
Who manages the Government Pension Fund Global?
The fund is managed by NBIM (Norges Bank Investment Management), one of the three operational wings of the Norwegian central bank (Norges Bank). Investment decisions are made by managers within NBIM, as well as external managers who are given specific investment mandates.
Can I apply for jobs at NBIM or the Government Pension Fund Global?
Information about job openings and NBIM’s trainee programme is listed on the career pages on this web site.
