GAPP Principle 16

The governance framework and objectives, as well as the manner in which the SWF’s management is operationally independent from the owner, should be publicly disclosed.

Status: Implemented

The governance framework is transparent and publicly disclosed. Both the overall framework and objectives are established by Parliament and laid down in legislation (the Government Pension Fund Act and the Folketrygdfondet Act). Further details on the division of roles and responsibilities between owner and manager are set out in the management mandate issued by the Ministry of Finance (asset owner) to Folketrygdfondet (operational manager). The mandate stipulates that Folketrygdfondet shall make investment decisions and exercise ownership rights independently of the Ministry.

The Ministry submits an annual report to Parliament (white paper) on the management of the Government Pension Fund. In addition to presenting the financial performance of the Fund, such reports cover discussions of investment beliefs and the investment strategy. The report to Parliament also includes an account of the governance of the Fund. The Fund reports are publicly available on the Ministry website.

Sources: Government Pension Fund Act, Folketrygdfondet Act, GPFN mandate, Ministry of Finance’s website.