Fund Governance

The framework for the Government Pension Fund and the management of fund assets were laid down by the Norwegian Parliament (Stortinget) and are updated periodically.  The Ministry of Finance holds overall responsibility for the management of the Fund, but operational management of the GPFG and GPFN is carried out by Norges Bank Investment Bank, a branch of the Norwegian Central Bank, and Folketrygdfondet, respectively, under mandates laid down by the Ministry. 

The investment strategy for the Fund is based on long-term considerations of different investment choices.  “Good financial return over time is deemed to be contingent on a sustainable development in economic, environmental and social terms.” [1]  That is, as is the unique character of Norwegian society, environmental and social factors are as important as economic ones, at least in theory.  With responsibility for management of the Fund coming under the Ministry of Finance and actual management under the Norwegian Central Bank, however, one wonders if the contingency is as strong as one might hope.  

On the other hand, as one of the most ethical nations on Earth, we wish to encourage the increased weighting of ethical and ecological considerations.  The matter of ethical investing is not new in Norway, as we will see in the next page on The Ethical Council.

[1] – The official Norwegian Government Pension Fund website.