Norges Bank Investment Management (NBIM) is the asset management division of Norges Bank, Norway’s central bank. It manages the Norwegian Government Pension Fund Global, one of the world’s largest sovereign wealth funds. Its mission is to safeguard and build financial wealth for future generations of Norwegians. NBIM seeks the highest possible return within the risk limits set by the Ministry of Finance, while protecting the long-term economic interests of the Norwegian people through active management and responsible allocation.
Norges Bank Investment Management
At the end of 2017, the Government Pension Fund Global had a market value of 8,488 billion kroner ($1,037 billion).
“We are long-term financial supporters for future generations. This makes us dependent on sustainable market outcomes. We have therefore joined efforts to strengthen sustainability standards and sound corporate governance practices, which in turn support the long-term value creation of all companies.” — Yngve Slyngstad, CEO of Norges Bank Investment Management
NBIM’s Financial Strategy
As a fund dedicated to future generations, NBIM has an exceptionally long investment horizon. Prudent long-term investment is a core principle of its management. It acts as a responsible and engaged owner, assessing financial, environmental, and social risks across its portfolio. Its approach is built on three key pillars:
1. Develop Guidelines
NBIM works to promote well-functioning markets and sustainable outcomes. It adheres to key international standards and principles, while also contributing to their development. Clear expectations for companies, position statements on important issues, and transparent voting guidelines ensure consistency. Sound governance, in NBIM’s view, is a driver of long-term economic performance.
2. Exercise Active Ownership
The fund promotes long-term value creation in the companies in which it invests. Voting is its primary tool for exercising ownership rights. Through active dialogue, NBIM raises concerns related to governance, sustainability, and disclosure, encouraging companies to adopt sound business practices. It also collaborates with companies and other investors to improve transparency and corporate accountability.
3. Contribute to Market Development
NBIM identifies long-term investment opportunities while managing risk exposure responsibly. It supports initiatives that enhance the financial ecosystem and refrains from investing in certain companies that fail to meet long-term sustainability or ethical standards. By integrating sustainability into its investment strategy, NBIM aims to create a more resilient global economy.
Is Norges Bank Investment Management a Sovereign Wealth Fund?
Norges Bank is Norway’s central bank. NBIM, its investment arm, manages the Government Pension Fund Global (GPFG), which is widely regarded as the world’s largest sovereign wealth fund. While Norges Bank also performs traditional central bank roles such as monetary stability and price control, NBIM’s sole responsibility is managing this global investment portfolio on behalf of the Norwegian people.
Can You Invest in Norway’s Fund?
Individual investors cannot invest directly in the Government Pension Fund Global, as it is a state-owned fund dedicated to Norway’s citizens. However, foreign investors can gain exposure to Norway through listed companies such as Equinor ASA (NYSE: EQNR), or through regional exchange-traded funds like the Global X FTSE Nordic Region ETF (NYSE: GXF).
How Much Wealth Does Norway Allocate to Its Citizens?
As of December 2021, the assets managed by NBIM equated to approximately $250,000 for every Norwegian citizen. The fund invests across equities, bonds, and real estate worldwide. Some companies are excluded from investment based on ethical and sustainability considerations. Alongside the GPFG, Norway also has a smaller Government Pension Fund (established in 1967), which functions as a national insurance reserve.