Fund will continue to be a major player in real estate

Last Wednesday, Norges Bank’s Executive Board decided on a new strategy for real estate investments in the Government Pension Fund Global (GPFG).

8 February 2019

Some media coverage has created the impression that the fund’s real estate investments are being closed down. We would like to emphasise that real estate will continue to be an important part of the bank’s investment strategy for the GPFG, and the fund will be a major player in the real estate markets in the years to come.

The objective is now to have a real estate portfolio in the range of 3–5 percent. The real estate portfolio will consist of both listed and unlisted real estate investments, and there will not be a specific limit as to how much listed real estate the fund may have. The portfolio is to be well diversified. The strategy is to be simple, with emphasis on cost-efficiency. Therefore, the real estate organisation will be integrated with our management organisation, NBIM. There will still be enough flexibility to be able to exploit investment opportunities in the unlisted real estate market.

The real estate organisation has been built up as a professional organisation that has made investments that will benefit generations to come. Their competence is something that Norges Bank wants to benefit from going forward as well.

- Egil Matsen, Deputy Governor Norges Bank