The Government Pension Fund Global was established the 1st of January 2006 together with Global Pension Fund Norway. Oil revenues make it possible for Norway to maintain its pension system even though we now have more pensioners in relation to workers than originally estimated. Our oil revenues have also made us one of the world's largest holders of corporate stock.
Norway is the world’s seventh largest exporter of oil
Oil-related activities are an enormous source of income to the Norwegian state. The fund has a long-term perspective. The goal is not quick returns, but security for Norwegians of the future. The Norwegian Government Pension Fund Global is one of the largest funds in the world with a single owner. A highly expert organization of asset specialists has been assembled to manage it.
Openness and spreading the risk
The Norwegian Government Pension Fund Global is open about its investment strategy and the size of the fund. To spread risk and avoid being perceived as a threatening investor, the fund purchases relatively small blocks of shares in many companies across many markets, rather than concentrating its investments.
With investments in some 7,000 companies in many countries, and in both stocks, bonds and real estate, the fund's risk is quite diversified. It owns an average of less than two percent of each company it invests in, and there is an upper limit of 10 percent. Therefore observers in other countries are not inclined to view the fund's investments as large or hostile acquisitions. The fund managers also make sure to avoid investments where there is a danger of contributing to unethical activity. A special ethics council helps the managers evaluate which stock and sovereign bonds to avoid.
If you are interested in which Irish companies The Government Global Pension Fund has invested in, please visit Norges Bank Investment Management’s website.