Government Pension Fund (Norway)

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.

BREAKING DOWN '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. National Pensions Reserve Fund

    The National Pensions Reserve Fund is a public pension fund established ...
  2. Australian Future Fund

    A sovereign wealth fund established by the government of Australia. ...
  3. Pension Fund

    A fund established by an employer to facilitate and organize ...
  4. Advanced Funded Pension Plan

    A pension plan that is funded concurrently with the employee's ...
  5. Strategic Investment Fund

    The Strategic Investment Fund is a government-owned sovereign ...
  6. Unfunded Pension Plan

    An employer managed retirement plan that uses the employer's ...
Related Articles
  1. Markets

    Norway, the Safest Oil Economy?

    Norway is one of the most stable oil-producing countries in the world. But for how much longer?
  2. Retirement

    What are Pension Funds?

    A pension fund is a company-sponsored fund that provides income for employees in retirement.
  3. Markets

    Will Sovereign Wealth Funds Roil Equities Markets?

    An increase in redemptions by oil economies will have an adverse effect on global equities and exacerbate an already fragile global economy.
  4. Markets

    Why Are Pension Funds Sticking with Hedge Funds?

    A marriage of necessity: pension fund managers continue to chase risky alternative investments to meet growth targets amidst falling investments.
  5. ETFs & Mutual Funds

    The 4 Best American Funds for Growth Investors in 2016

    Discover four excellent growth funds from American Funds, one of the country's premier mutual fund families with a history of consistent returns.
  6. ETFs & Mutual Funds

    (ENOR, NORW) 2 Best Norway ETFs for 2016

    Learn about the top two exchange-traded funds, or ETFs, that track the Norway equity market, and explore analyses of their characteristics and suitability.
  7. Investing

    Advising FAs: Explaining Mutual Funds to a Client

    More than 80 million people, or half of the households in America, invest in mutual funds. No matter what type of investor you are, there is bound to be a mutual fund that fits your style.
  8. ETFs & Mutual Funds

    5 Characteristics of Strong Mutual Fund Shares

    Discover some of the basic characteristics shared by good mutual funds that investors can use to help them in selecting funds.
  9. Retirement

    Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.
  10. ETFs & Mutual Funds

    3 Expensive Global Mutual Funds Worth Your While (NPFCX, MWEGX)

    Learn about three expensive global mutual funds that offer attractive features to investors. These funds have good historical performance results.
RELATED FAQS
  1. Is Norway a developed country?

    Learn why Norway's GDP, anti-corrupt laws and oil exports make it a developed nation and one of the wealthier nations in ... Read Answer >>
  2. The company I am receiving my pension plan from has just filed bankruptcy. Could ...

  3. How much of an institutional pension fund's portfolio is typically investing in real ...

    Learn what percentage of assets institutional pensions typically allocate to real estate investments. Read Answer >>
  4. Where does a hedge fund get its money?

    Learn how a hedge fund is structured and how the managing partner of the fund goes about the process of finding and soliciting ... Read Answer >>
  5. How do I calculate the loan-to-value ratio using Excel?

    Learn what a mutual fund and a money market fund are, and understand the differences between each and how they serve various ... Read Answer >>
  6. Why are insurance companies and pension funds considered financial instruments?

    Find out why insurance companies and pension funds are considered carriers of financial instruments, and what role they play ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center