The Government Pension Fund Global is intended to support long-term management of Norway’s petroleum revenues. Owing to recent years’ solid growth, the fund is now equal to 140 percent of the mainland gross domestic product.
The objective of the management of the fund is to achieve the highest possible international purchasing power. The best means of ensuring this is to have broad-based ownership of global production of goods and services. In line with this objective, the fund’s investment strategy was revised substantially in 2012. To reduce long-term risk, there is now a better balance in the geographical allocation of investments than previously.
On the whole, emerging markets are characterised by factors that, in isolation, contribute to higher risk – in the short term. Nevertheless, we believe that over time, the changes that have been implemented are firmly in keeping with the objective of Norges Bank’s management of the fund: safeguarding financial wealth for future generations.
Results for the past year reflect developments in global financial markets. The return of 13 percent for 2012 is the second-best performance in the history of the fund.
Oslo, 27 February 2013
Øystein Olsen
Chairman of the Executive Board