2007

This article summarises our experience of internal equity management for the Government Pension Fund – Global over the last five years, with emphasis on active global sector management. Norges Bank has had favourable experience of its internal managemet strategies, and they have made a major contribution to the Fund's excess return. As can be seen from the article, internal equity management as a whole has produced an information ratio (risk-adjusted excess return) of 1.2 based on the actual risk in the portfolios. The total excess return generated by these mandates is in excess of NOK 7.3 billion.

This article presents the plans for Norges Bank's corporate governance work in the coming years. This work will concentrate on six priority areas. Four concern fundamental ownership rights: the right to vote, the right to nominate and elect board member, the right to trade shares freely, and the right to open and timely information. The other two concern social and environmental sustainability: children's rights in the value chains of multinationals, and companies' interaction with national and supranational authorities in questions related to long-term environmental changes and liabilities.

This article explains why Norges Bank attaches importance to voting in its portfolio companies, and why voting is a key means of safeguarding our ownership rights. Continued participation in companies' AGMs, increased efforts to ensure judicious voting, and work to promote the provision of sufficient, timely and accurate information by companies will be key elements in Norges Bank's corporate governance work in the years ahead.