Transparency and trust are driving forces behind the management of Norway’s revenues from the energy sector. The Government Pension Fund has been a forerunner for other Sovereign wealth fund (SWF).
02/11/2007 :: The Fund is Europe’s largest and holds a market value of almost USD 356 billion (NOK 2000 milliarder).
Global investments
Norway is one of the world's largest petroleum exporters and the Fund gets its revenues from the energy sector. Today, Norway is investing its petroleum income in 42 different markets and 31 currencies. Norway’s Government Pension Fund – Global is a tool to manage Norway’s petroleum wealth wisely.
Gullfaks A oil platform. Photo: StatoilHydro.
Trust management
The management aims for international best practice, and the exercise of ownership rights is based on internationally accepted principles such as the UN Global Compact and the OECD Guidelines of Corporate Governance and for Multinational Enterprises.
Key factors in the management of the Fund include a high degree of transparency in all aspects of its purpose and operation, the Fund’s role as a financial investor with non-strategic holdings, an explicit aim to maximise financial returns, and clear lines of responsibility between political authorities and the operational management.
The management aims to follow internationally accepted principles such as the UN Global Compact and the OECD Guidelines of Corporate Governance and for Multinational Enterprises. Photo: Helge Hansen/ StatoilHydro.
- Best practice of open funds like Norway
"There is a strong case for sovereign wealth funds to adopt the best practice of open funds like Norway," said Gerard Lyons, chief economist at Standard Chartered Bank in London to International Herald Tribune.
Facts about the fund
The Government Pension Fund was established 1 January 2006. The Fund is split into two branches: The Government Pension Fund – Norway, formerly the National Insurance Scheme Fund, and the Government Pension Fund – Global, formerly the Government Petroleum Fund. The Ministry of Finance has the overall responsibility of the Government Pension Fund. However, the operational management of the Government Pension Fund – Global is delegated to the by the Norwegian Central Bank.
Norway seeks to manage the revenues from the energy sector in a responsible and long term perspective. Photo: Knut Bry/ tinagent.com
Norwegian Ministry of Foreign Affairs