GAPP Principle 2

The policy purpose of the SWF should be clearly defined and publicly disclosed.

Status: Implemented

The Government Pension Fund consists of the Government Pension Fund Global (GPFG) and the Government Pension Fund Norway (GPFN). There is no transfer of capital between the GPFG and the GPFN. The purpose of the Government Pension Fund, as stated in the Government Pension Fund Act, is to support government savings to finance the pension expenditure of the National Insurance Scheme and facilitate spending of government petroleum revenues that reflects long-term considerations, thus ensuring that the petroleum wealth benefits both current and future generations.

The Government Pension Fund Act states that the investment objective shall be the highest possible return at an acceptable level of risk and that within the scope of this objective, the Fund shall be managed responsibly. The Ministry of Finance has pursuant to this Act laid down the mentioned objective and premise, and further regulations on the management of the Fund in a separate management mandate to Folketrygdfondet.

In the mandate the Ministry sets the general investment framework for the Fund and stipulates requirements regarding risk management, reporting and responsible management. Within the limits set by the Ministry, Folketrygdfondet shall seek to generate the highest possible return, net of costs, measured in Norwegian kroner. The mandate further specifies that Folketrygdfondet shall make investment decisions and exercise ownership rights independently of the Ministry.

Source: Government Pension Fund Act, GPFN mandate.