nbim.no Government Pension Fund Global Norway : Norges Bank Investment Management

Name of the Organization : Norges Bank Investment Management
Type of Facility : Government Pension Fund Global
Country : Norway

Website : http://www.nbim.no/en/the-fund/

Government Pension Fund Global :

The Government Pension Fund Global is saving for future generations in Norway. One day the oil will run out, but the return on the fund will continue to benefit the Norwegian population.

Related : Norwegian Labour & Welfare Organization Apply For Unemployment Benefits : www.statusin.org/9538.html

The fund’s market value:
6 579 Billion nok

The fund’s market value rose 56 billion kroner to 5,534 billion kroner in third quarter 2014. Equity investments had a market value of 3,396 billion kroner, while the value of fixed-income investments was 2,064 billion kroner. Investments in real estate had a market value of 74 billion kroner at the end of second quarter 2014.

In third quarter 2014 the fund returned 15 billion kroner and received 36 billion kroner from the government. The krone weakened against many of the main currencies during the quarter, which increased the fund’s value by 5 billion kroner. More on the fund’s return

At the end of September 2014 the fund was invested with 61.4 percent in equities, 37.3 percent in fixed income and 1.3 percent in real estate.

Facts about the fund:
82 countries
8,000 companies
1.3% of the world’s listed companies
2.5% of europe’s listed companies

The Fund’s returns:
The fund generated an annual return of 5.7 percent from the establishment of Norges Bank Investment Management in 1998 to the end of 2013. After management costs and inflation, the return was 3.6 percent. The return in dollars was 6.7 percent.

We aim to invest in a wide range of countries, companies and assets to obtain the highest possible return with moderate risk as laid down by the Ministry of Finance. The fund cannot be invested in Norway.

The budgetary rule:
4% of the fund value can be used in the national budget

117.3 Billion kroner was transferred to the national budget in 2013

The fund is integrated into the government budget. One fundamental principle of Norwegian fiscal policy is the so-called budgetary rule, namely that, over the course of a business cycle, the government may spend only the expected real return on the fund, estimated at 4 percent per year. This helps phase oil revenue into the economy gradually, and spending just the return on the fund rather than eating into its capital means that the fund will also benefit future generations.

Returns :
** The fund seeks to achieve the highest possible long-term return with an acceptable risk.
** The Norwegian government first transferred capital to the fund in May 1996. By the end of the second quarter of 2017, the fund had received a total of 3,360 billion kroner and amassed a cumulative return of 3,622 billion kroner.
** The fund generated an annual return of 5.9 percent between 1 January 1998 and the end of the second quarter of 2017. After management costs and inflation, the annual return was 4.0 percent.

Norges Bank Investment Management:
Bankplassen 2
P.O.Box 1179 Sentrum
No-0107 Oslo