Norway Government Pension Fund Global
|Kingdom of Norway||US$ 818 Billion|
Transparency Rating: 10
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Firm Investment Style: Index
Entity Structure: Fund
Population Est.: 5.06 million – 2013
Wealth Per Capita Est.: $161,660
The Government Pension Fund Global (GPFG) 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.
In 2013, the NBIM created a corporate Governance Advisory Board to strengthen its long-term active ownership. The advisory board will assist in board nomination practices with regard to the sovereign fund’s listed equity investments. In addition, the board will serve as a body on active ownership and regularly assess NBIM’s ownership activities relative to optimal practices. Listed companies that undergo strategy shifts, takeovers or capital restructurings may receive board advice. Target companies will be firms in which the NBIM owns more than $1 billion in shareholdings.
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. NBIM established a corporate Governance Advisory Board.
| Strategy & Objectives
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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 to oversee direct and indirect real estate investments in mainland Europe for the Government Pension Fund Global.
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.