To main content

The fund’s benchmark index for equities

In its letter of 6 November 2018, the Ministry of Finance asked for Norges Bank’s assessment of the geographical distribution and composition of the benchmark index for equities for the Government Pension Fund Global (GPFG). The Bank has published its response today in two letters.

27 August 2019

Letter on geographical distribution 

The geographical distribution of the fund’s benchmark index for equities has been adjusted over time towards float-adjusted market weightsThe Bank’s advice is that the geographical distribution should be adjusted further towards float-adjusted market weights by increasing the weight of equities in North America and reducing the weight of equities in European developed markets. 

Letter on the composition of the subindex for emerging equity markets  

Norges Bank recommends noto change the method and rules for the composition of the subindex for emerging markets in the benchmark index for equities. The Bank’s experience from almost 20 years as a sovereign minority shareholder in companies in emerging markets has been positive. The benchmark index should continue to include all companies in all developed and emerging markets in the FTSE Global All Cap. 

For discussion in the Ministry of Finance 

Norges Bank’s letters on the investment strategy of the GPFG to the Ministry of Finance are advice and assessments, not decisions. According to the Bank’s letters, the advice is not based on any particular view on future return in individual markets or regions. The advice and the assessments have been sent to the Ministry of Finance for further discussion. It is the Ministry that makes decisions on geographical distribution and the composition of the subindex for equity investments in emerging markets.  


Press contacts:

Thomas Sevang, Head of Communications and External Relations
Tel: +47 926 01 756 / +47 24 07 32 76

Marthe Skaar, Manager Communications and External Relations
Tel: +47 926 17 663 / +47 24 07 35 61


Read the letters