Government Pension Fund of Norway

oil fund oil sharesA snapshot of the value of the Norwegian Oil fund. The fund grows approx. NOK 1 million every second or two. Photo: nmib

Government Pension Fund of Norway: For you and the next generations

The total assets of the Norwegian Government Pension Fund have reached over a trillion US dollars, which is a world record. This article is written with that as a pretext. I suggest that you do not bypass this information.


The Government Pension Fund Global, also known as the Oil Fund, was established in 1990 to invest the surplus revenues of the Norwegian petroleum sector.

The current assets of the Norwegian investment fund, which is set up to save oil and gas revenue for future generations, is roughly 2.5 times the size of the Norwegian annual gross domestic product (GDP).

It is noteworthy that, according to earlier forecasts, the fund’s assets in the 2020s were estimated to be about 1.3 times larger than the Norwegian GDP.

The current mission of the Government Pension Fund Global is to invest in foreign exchanges, securities, property and holding companies in 77 countries.

In the second quarter of 2017, nearly two-thirds of the fund’s capital was transferred to the stock exchanges – away from fixed assets and loans. Currently, it is a shareholder in about 9,000 foreign companies (it is barred from all domestic investments).

 


The 3 per cent fiscal rule

According to the Norwegian fiscal rules, the government can use 3 per cent of the fund’s assets each year to cover its spending, equivalent to 100 billion euro, including the recent Norwegian fiscal policy focus on currencies, namely Swiss francs, US dollars, the euro and British pounds.

The current Norwegian population is 5.3 million, representing less than one-tenth of a per cent of the world’s total population. I believe that this is one of the best government policies in the world.

On the website of the Norwegian Oil Fund, you are met with the real-time value of the fund. The constantly changing figure on top of the banner is clearly displayed, accompanied by the following slogan:

We work to safeguard and build financial wealth for future generations

References

Norges Bank: Pension Fund Global

Wikipedia: Government Pension Fund of Norway

Norway Today: Related Articles


This article is written by our contributor, Ali Ashrafi, to be shared with the esteemed readers of Norway Today.

© Ali Ashrafi / #Norway Today
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