Investment decisions in Norges Bank Investment Managment are based on in-depth analysis. In addition to portfolio managers, we have teams analysing developments in equities, fixed income, real estate, credit markets and macroeconomics. We also have a unit focusing on the theoretical foundation for the fund’s management.
The Norwegian Finance Initiative
The Norwegian Finance Initiative (NFI) was established to promote financial research and education in areas relevant to the fund’s long-term management. These include asset pricing and portfolio theory, corporate finance, active ownership, corporate governance and market microstructures.
A good long-term return depends on sustainable economic, environmental and social developments. We consider social, environmental and governance risks when making large investments and as part of our active ownership. We have established a database with information on such risks at many of the largest companies the fund invests in. We have also published documents outlining how we expect companies to manage such risks.
Advice on the overall investment strategy
Norges Bank Investment Management provides advice to the Norwegian Ministry of Finance on the fund’s overall investment strategy. The overall strategy is set by the ministry following discussions in Norway’s parliament.
Our employees regularly write Discussion Notes that cover topics we deem to be relevant for the development of the investment strategy of the Government Pension Fund Global. Norges Bank may use these notes as specialist references in letters on the Government Pension Fund Global. However, all views and conclusions expressed in the discussion notes are not necessarily held by Norges Bank.
Asset Manager perspectives
The Asset Manager Perspective series articulates Norges Bank Investment Management’s views and reflections on issues topical for the financial industry. They are not meant to be definitive, rather they are intended as timely contributions for the benefit of all market participants. The series is written by employees, and is informed by our investment research and our experience as a large, long-term asset manager.