GPFG

The Government Pension Fund Global (GPFG) is Norway’s sovereign wealth fund and the largest in the world by assets. Established in 1990 to manage the surplus revenues of the Norwegian petroleum sector, its purpose is to preserve wealth for future generations and to moderate the economy’s exposure to oil revenue. Officially named the Government Pension Fund Global, it is designed to deliver a long-term real return while limiting domestic budgetary impact from petroleum income.

The fund is managed by Norges Bank Investment Management (NBIM) on behalf of the Norwegian Ministry of Finance. The Ministry sets the mandate, guidelines, and withdrawal rules, while NBIM handles day-to-day asset management and risk control. Oversight is provided by independent bodies, including a Supervisory Council for the fund and the Council on Ethics, which issues exclusions and guidance to ensure responsible investment practices.

GPFG assets are invested globally across multiple asset classes, with a broad diversification strategy. The portfolio commonly includes large allocations to equities and fixed income, complemented by a smaller allocation to real estate and other investments. Investments span thousands of companies and governments worldwide, with the fund applying ethical guidelines that can lead to the exclusion of certain entities from its holdings.

The GPFG is a prominent example of a sovereign wealth fund aimed at intergenerational equity and macroeconomic stability. Its size, governance framework, and commitment to responsible investing have made it a reference point in discussions of public asset management and climate risk, though it continues to adapt to evolving financial and ethical considerations.