Government Pension Fund (Norway)

AAA

DEFINITION of 'Government Pension Fund (Norway)'

A fund made up of two separate Norwegian investment funds with different mandates: the Government Pension Fund – Global and the Government Pension Fund – Norway. The Government Pension Fund – Global is a sovereign wealth fund derived mainly from Norway's oil wealth. The Government Pension Fund – Norway was previously associated with Norway's social security system, but is now a sovereign wealth fund that invests strictly in Norwegian firms.

INVESTOPEDIA EXPLAINS 'Government Pension Fund (Norway)'

The Global fund is managed by Norges Bank Investment Management (NBIM), a part of the Norwegian Central Bank. It is one of the largest sovereign wealth funds in the world with approximately $443 billion in assets under management as of 2009. The Global fund invests in a wide array of asset classes and both domestically and internationally. Since 2004, the Global fund's investments have been restricted by an ethical council that has the power to exclude firms that are involved in objectionable activities. The Global Pension Fund – Norway is a much smaller fund and is limited to investing in domestic firms. Despite its smaller size, its limited investment mandate has led to the Norway fund being a large shareholder in many publicly-traded Norwegian firms.



RELATED TERMS
  1. Ontario Teachers' Pension Plan ...

    An organization that oversees the pension plan for public school ...
  2. SAMA Foreign Holdings (Saudi Arabia)

    A Saudi Arabian sovereign wealth fund. The fund is controlled ...
  3. Government Of Singapore Investment ...

    A government-owned company assigned to manage Singapore's sovereign ...
  4. Central Bank

    The entity responsible for overseeing the monetary system for ...
  5. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
  6. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
RELATED FAQS
  1. What country spends the most on healthcare?

    The United States currently ranks highest in health care spending. Of the countries spending the most on health care, the ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Sovereign Wealth Funds - Friend Or Foe?

    With $5.86 trillion in assets as of September 2013, SWFs have a great deal of clout in financial markets. But as the majority of SWFs are located in the Middle East and Asia, whether these largely ...
  2. Mutual Funds & ETFs

    An Introduction To Sovereign Wealth Funds

    Countries use sovereign wealth funds to stabilize their economies, but these investments can lack transparency.
  3. Retirement

    The Defined-Benefit Plan's Many Problems

    The shift in retirement plan schemes - from defined benefit plans to defined contribution plans - raises some important issues.
  4. Budgeting

    The Demise Of The Defined-Benefit Plan

    Experts are making bleak predictions for your post-work years. Be prepared and plan for your future.
  5. Investing

    How To Evaluate Pension Risk By Analyzing Annual Costs

    Learn how to assess whether a company's pension plan is posing more risks than what the footnotes indicate.
  6. Taxes

    How To Use Your IRA As A Last-Minute Tax Deduction

    While some people are stressing over their taxes, there is a big advantage to delaying the process: You can maximize your 2014 contributions to your IRA.
  7. Retirement

    Best IRA Accounts For Beginners

    Opening your first IRA should be just an early step in your ongoing financial education, for the more help you need, the higher fees you're likely to pay.
  8. Retirement

    How (And Why) To Open an IRA Now

    Take these simple steps to set up an Individual Retirement Account that will save you tax money and set you up for the future.
  9. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  10. Investing

    How To Trade Foreign Stocks

    We weigh the major ways to trade foreign stocks for investors.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center