The Norwegian Government Pension Fund – Global has large holdings in the South African stock market. As per 31. December 2008, the Fund’s South African Equities had a market value of about 9.496 billion Rand, or about NOK 6.547 billion.
Equities at 31 December 2008
See also the Fund’s Benchmark portfolio
The Government Pension Fund is today one of the world’s largest funds with one owner and it represents the world’s greatest oil fortune per citizen with a value close to USD 400 Billion. The fund owns about 1 per cent of the global ownership stake. No other democracies have such as big fund. The Government Pension Fund does not make investment decisions from a political perspective.
The Government Pension Fund was established in 2006 and consists of two parts: "The Government Pension Fund - Global", which is a continuation of the Petroleum Fund, and "The Government Pension Fund - Norway", which was previously known as the National Insurance Scheme Fund. The Ministry of Finance is responsible for the management of the Government Pension Fund. The operational management of the Pension Fund - Global is carried out by Norges Bank, which invests the fund’s capital in bonds and equities outside of Norway in accordance with guidelines issued by the Ministry. The operational management of the Pension Fund – Norway is carried out by Folketrygdfondet.
Fact sheet about the Government Pension Fund – Global
Ethical Guidelines are important to the Fund. Firstly, the Fund should be managed with a view to achieving high return that will enable coming generations to benefit from the country’s petroleum wealth. Secondly, the fundamental rights of those affected by companies in which the Fund invests should be respected. This ethical basis is promoted through two instruments: exercise of ownership rights and exclusion of companies from the Fund’s investment universe.
The Ministry of Finance has excluded the South-African company DRD Gold Limited (DRD Gold) from the investment universe of the Norwegian Government Pension Fund – Global, based on a recommendation from the Council on Ethics for the Fund. According to the Council on Ethics the Fund runs an unacceptable risk of contributing to severe environmental damages by continuing to invest in the company.
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