GOVERNMENT
PENSION FUND GLOBAL
THE FUND MANAGEMENT IN 2015
HEARING BEFORE THE STANDING COMMITTEE ON FINANCE AND ECONOMIC AFFAIRS OF THE STORTING, 29 APRIL 2016
YNGVE SLYNGSTAD, CHIEF EXECUTIVE OFFICER
Annual return
Percent
-30 -20 -10 0 10 20 30
-30 -20 -10 0 10 20 30
Annual return
Accumulated
annualised return since 1998
5.6%
4Q 2015 3.6 %
2015 2.7 %
Last 10 years 5.3 %
Since 1998 5.6 %
2.7%
Accumulated market value
As at 31.3.2016. Billons of kroner
-1,000 0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
-1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Return
Krone rate
Inflow (after
management costs)
Source: Norges Bank Investment Management
1 045 2 591
3 475
Management objective
HIGH LONG-TERM
RETURN Safe
Efficient
Responsible
Transparent
New expectation document
Result of dialogue with companies, experts and NGOs
Expectations on strategy, risk management, reporting and transparency
Starting point for interaction with companies
Human rights
2008 Expectation document
2009 Establishment of environment-related mandates
2010 Assessments of climate reporting 2013 First coal divestments
2014 Portfolio carbon footprint analysis 2015 Research and analysis projects 2016 New coal and climate criteria
Climate change activities over time
52 coal companies excluded
First coal exclusions made public on 14 April 2016
Contribution to public discussion
Advice on the GPFG’s investments
Discussion notes on investment strategy
Asset manager perspectives on financial markets
Expectations towards companies
Position papers on corporate governance issues
Reports
2015
Three pillars of responsible investment
International standards
Our principles and expectations
Responsible investment research
Standard setting Ownership Risk management
Voting
Company dialogue
Board interaction
Risk monitoring
Industry initiatives
Focus areas
Environment-related mandates
Risk based divestments
Report on performance and risk 2015
Various methods and measures
Two parts aimed at different audiences
• Main report
• Appendix
Underlying data made publicly available
MoF gives mandate to invest up to 5%
in real estate
2015
London
2014
2011 2012 2013
2006 2010
Paris
Berlin New York
Boston
Munich
Norges Bank recommends MoF to include real estate in the
fund
Tokyo and Singapore announced as
strategic markets
Logistics
New real estate investments in 2015
US
• 7 transactions
• Total value 36,5 bn NOK.
UK
• 2 transactions
• Total value 5,9 bn NOK .
Europe
• 1 transaction
• Total value 1,3 bn NOK.
10 transactions in total
Source: Norges Bank Investment Management
Accrued income
Billion kroner
0 25 50 75 100 125 150 175 200
0 25 50 75 100 125 150 175 200
2015 2014
Rental income 6.7 3.7
Dividends 106.6 88.0
Coupons 78.1 65.5
Sum 191.4 157.2
GOVERNMENT
PENSION FUND GLOBAL
THE FUND MANAGEMENT IN 2015
HEARING BEFORE THE STANDING COMMITTEE ON FINANCE AND ECONOMIC AFFAIRS OF THE STORTING, 29 APRIL 2016
YNGVE SLYNGSTAD, CHIEF EXECUTIVE OFFICER
