Review of the equity benchmark for the Government Pension Fund Global

Siv Jensen, Share Tax exemptions G20 Summit tour of eastern Norway Budget bankrupt Labour cabinMinster of Finance for the Progressive Party (FRP), Siv Jensen. Photo: Progress Party

The Ministry of Finance has received assessments from Norges Bank on the composition of the equity benchmark for the Government Pension Fund Global (GPFG). The Ministry’s assessments will be presented in the report on the Government Pension Fund in the spring of 2020.

“Equities make up the majority of the investments in the GPFG and it is important that the framework for these investments is appropriate and updated. Towards next spring, we will consider whether there is a need for making adjustments to the equity benchmark. The Bank’s assessments are part of the contributions we will receive for this work,” says Finance Minister Siv Jensen.

The Ministry of Finance’s review will be broad, including assessments of risk and how we best should meet the expectations set for the management of our common savings. Therefore, the consultancy firm and index provider MSCI has also been asked to prepare a report containing analyses of equity market trends and consequences for risk and return of different geographical compositions. The report should be finalised this autumn.

The assessments from Norges Bank as well as the report from MSCI will form part of the basis for decision when the Ministry of Finance decides whether to adjust the framework and the equity benchmark for the GPFG. The Ministry will present its assessments in the annual report to the Storting on the Government Pension Fund next spring.

Implementation of any changes in the benchmark index will be gradually over time.

Source: / Norway Today