Pensjonsfondet

Pensjonsfondet, often translated as the "pension fund," refers to a significant investment vehicle managed by the Norwegian government. Its primary purpose is to secure the financial future of the nation by investing oil and gas revenues for future generations. The fund operates as a sovereign wealth fund, meaning it holds assets on behalf of the state.

The Norwegian government established the fund in 1990, initially known as the Government Petroleum Fund. It was renamed Pensjonsfondet in 2006 to better reflect its long-term objective of supporting future pension expenditures. The fund's investments are diversified globally across various asset classes, including equities, bonds, and real estate. This diversification aims to mitigate risk and maximize long-term returns.

A key principle guiding Pensjonsfondet's management is a strict ethical investment framework. The fund divests from companies involved in certain controversial activities, such as the production of cluster munitions, anti-personnel mines, and tobacco. It also considers environmental, social, and governance (ESG) factors in its investment decisions.

The wealth generated by Pensjonsfondet is intended to supplement government budgets in the future, particularly as the country's oil and gas resources are depleted and its population ages. The Norwegian Ministry of Finance oversees the fund's management, with day-to-day operations handled by Norges Bank Investment Management, the investment management division of the central bank of Norway. The fund's value fluctuates with global market performance, but its substantial size makes it one of the world's largest sovereign wealth funds.