The Government Pension Fund of Norway is the largest in the world. On July 2013 the amount of assets in the fund reached $740 billion. The fund is managed by the private sector arm of the Central Bank of Norway (Norges Bank Investment Management, NBIM).
According to statements by Yngve Slyngstad, head of NBIM, the fund is gradually increasing the share of investment in emerging markets, while reducing the share of investment in European assets. In addition, structure of the bond portfolio changes: the fund will mainly invest in bonds of countries with low debt load.
However, the fund continues to be managed by a single company only. The opposition rushing to power wants to change the situation, believing that if the pension fund is divided into several parts, the competition between several management companies will help to increase the total amount of assets.
Erna Solberg thinks that the funds may have a different investment strategies.
– The structure of the pension fund has not changed since its inception in 1996. The changes should be implemented long ago to increase the profitability of our investments from the fund without increasing risk. In addition, we should talk about investing for the long term rather than short-term speculation, – claims Solberg.
Party leader’s point of view is very significant in terms of further development of the structure of the pension fund of the country as Conservative Party is still ahead of Norway’s ruling Labor Party, according to recent polls.