Norges Bank Investment Management
Yngve Slyngstad, Chief Executive Officer, NBIM Hearing before the Standing Committee on Finance and Economic Affairs of the Storting
18 May 2010
Market value
In billions of NOK
2 500 3 000
2 500 3 000
1 000 1 500 2 000
1 000 1 500 2 000
0 500
0 500
98 99 00 01 02 03 04 05 06 07 08 09 10
2
Key figures 2008 – 2010
2010 Q1
2009 2008 Since Jan 1998
Return (NOK bn) 103 613 - 633 586
Return (NOK bn) 103 613 633 586
Return (per cent) 3.9 25.6 - 23.3 4.9*
Excess return (percentage points) 0.4 4.1 - 3.4 0.28*
*) Annualised
3
200 225
250 300
Purchases (left-hand scale, NOK bn) Index (right-hand scale, 31 Dec 1997=100)
Equity purchases and equity index
125 150 175
100 150 200
75 100
0 50
97 99 01 03 04 06 08 10
4
The GPFG’s ownership of equity markets
Percentage of market capitalisation in FTSE Index
1,75 2 1,75
2
Europe Americas Asia and Oceania
0 5 0,75 1 1,25 1,5
0 5 0,75 1 1,25 1,5
Asia and Oceania
0 0,25 0,5
0 0,25 0,5
98 99 00 01 02 03 04 05 06 07 08 09 10
Source: FTSE and NBIM 5
0 9%
Active market risk in the management of the GPFG
Relative (active) market risk as a share of GPFG’s total risk
Benchmark
portfolio Benchmark portfolio
0.3%
0.9%
Before
2008 1998-
2009
6 Source: Ang, Goetzmann, Shaefer
Equal treatment of shareholders
Active ownership
Strategic focus areas revised by the Executive Board in 2009
Shareholder rights and board responsibilities
Smoothly functioning financial markets
Climate change
Water management
Children’s rights
7
Dialogue with companies
Voting rights
Tools of active ownership
Principles for corporate governance
Legal action
Contact with investors and regulatory authorities
Shareholder proposals
Public views
8
Build a global organisation for the future
NBIM’s offices
Settlement, depots External managers
Information and communications services System and decision- making support System support for trading systems
9
