Norway Government Pension Fund Global
|Kingdom of Norway||US$ 715.9 Billion|
Transparency Rating: 10
View Sovereign Fund Transaction Data
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Firm Investment Style: Index
Entity Structure: Fund
Population Est.: 5.06 million – 2013
Wealth Per Capita Est.: $141,379
The Government Pension Fund is a sovereign wealth fund where the surplus wealth produced by Norwegian petroleum income is held. The fund changed name in January 2006 from its previous name the Petroleum Fund of Norway. The fund is commonly referred to as the Petroleum Fund (Norwegian: Oljefondet). It is not actually a pension fund as it derives its financial backing from oil profits and not pensioners.
The fund invested parts of the large surplus generated by the Norwegian petroleum sector, generated mainly from taxes of companies, but also payment for license to explore as well as Norway’s Direct Financial Interest and dividends from the partial ownership of StatoilHydro.
The sovereign wealth fund is administered by Norges Bank Investment Management (NBIM), a division of Norges Bank.
Strategy & Objectives
The purpose of the Government Pension Fund-Global is to facilitate government savings necessary to meet the rapid rise in public pension expenditures in the coming years, and to support a long-term management of petroleum revenues. The fund invests a large portion of assets in fixed income and equities. Up to 5% has been allocated to international real estate. They currently do not invest in private equity.
Investments have to be in line with the ethical guidelines based on sector and company behavior. The companies that the Fund invests in are closely monitored by a Council of Ethics. If companies are operating in conflict with the guidelines the Fund will consider withdrawal. Several companies have been excluded and can be viewed here
The guidelines restrict investment where there is a risk that a company is involved in activities that can contribute to violation of human rights, corruption, environmental damage or other particularly serious violations of fundamental ethical norms.
Sovereign Wealth Enterprises
1. NBIM s.à r.l. – Created on May 4, 2011, it is the Luxembourg-based entity for real estate investments in mainland Europe.
2. Burlington Number 1 (Limited Partner) Ltd – Manages the rights to rental income from the agreement with the Crown Street regarding the Regent Street investment.
3. Prologis European Logistics Partners Sàrl, a 50:50 euro-denominated joint venture with Prologis, that acquired a portfolio of distribution facilities wholly owned by Prologis in 11 target European global markets.