Equity management

The fund’s equity investments are spread across many different countries, sectors and companies to capture global value creation and diversify risk as best possible.

The fund is invested in around 9,000 companies all around the world. The largest geographical exposure is to Asia and North America , followed by developed markets in Europe and Oceania and emerging markets.

Investments are limited to companies listed on regulated exchanges and companies where the board has expressed an intention to apply for listing on an exchange. The fund may hold no more than 10 percent of the shares in a listed company.

Investments are spread across a variety of sectors, with exposure based on each sector’s market capitalisation. 

The FTSE Global All Cap stock index is the starting point for the fund’s equity investments and is the benchmark index applied by the Ministry of Finance.

Responsible investment

Norges Bank Investment Management is an active owner with a long investment horizon. Well-functioning, legitimate and efficient markets, good corporate governance and sustainable business practices are important to us. We therefore consider environmental, social and governance issues at the companies we invest in.

Voting and expectations to companies

We exercise our voting rights and engage with companies’ board and management to safeguard the fund’s investments. Selected topics are followed up across the companies in the portfolio. We have also formulated expectations for how we expect companies to manage risk and report on their activities. We publish position papers, our voting guidelines and how we voted at companies’ general meetings.

Our voting can be accessed one business day after the general meeting has concluded. 

Observation and exclusion and risk assessments

The Ministry of Finance has issued guidelines on the observation and exclusion of companies from the Government Pension Fund Global.  The ministry has set up a Council on Ethics as an independent body to investigate and evaluate companies and make recommendations on observation and exclusion. Norges Bank’s Executive Board takes the actual decision to exclude a company or place it under observation following a recommendation from the Council on Ethics.

Norges Bank Investment Management views risk-based divestments as a tool to reduce our exposure to risks that we believe could have a negative impact on the portfolio over time. The decision to reduce our exposure to individual sectors or companies through risk-based divestments is based on a total assessment of individual companies´ exposure to, and management of, relevant environmental, social and governance risk. 

The fund's largest equity holdings

In millions of kroner as at 31 December 2019

Company Country Holding
CompanyApple IncCountryUSHolding116,967
CompanyMicrosoft CorpCountryUSHolding104,640
CompanyAlphabet IncCountryUSHolding77,831
CompanyNestle SACountrySwitzerlandHolding71,686
CompanyAmazon.com IncCountryUSHolding68,631
CompanyRoche Holding AGCountrySwitzerlandHolding55,297
CompanyRoyal Dutch Shell PLCCountryUKHolding52,193
CompanyAlibaba Group Holding LtdCountryChinaHolding51,992
CompanyFacebook IncCountryUSHolding46,241
CompanyNovartis AGCountrySwitzerlandHolding44,604
CompanyBerkshire Hathaway IncCountryUSHolding39,717
CompanyTaiwan Semiconductor Manufacturing Co LtdCountryTaiwanHolding38,238
CompanySamsung Electronics Co LtdCountrySouth KoreaHolding36,257
CompanyJohnson & JohnsonCountryUSHolding35,206
CompanyTencent Holdings LtdCountryChinaHolding34,056
CompanyJPMorgan Chase & CoCountryUSHolding33,031
CompanyTOTAL SACountryFranceHolding29,464
CompanyBank of America CorpCountryUSHolding29,377
CompanyProcter & Gamble Co/TheCountryUSHolding28,412
CompanyHSBC Holdings PLCCountryUKHolding28,355

The funds holdings in equity markets

The equity investments consists of ownership shares in more than 9,000 companies world wide. On average the fund owns 1.5 percent of all listed companies.

The values are percentage of the market value of equities in the benchmark index. Source: FTSE, Norges Bank Investment Management

Last saved: 26/10/2018

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