Illustration from the annual report 2013
Government Pension Fund Norway is placed as a capital contribution with Folketrygdfondet, which manages the capital in its own name.
The capital can be placed in equity instruments taken up to trade in regulated market places in Norway, Denmark, Finland and Sweden, and in interest bearing instruments where the issuer is resident in Norway, Denmark, Finland and Sweden or has equity capital taken up to trade in regulated market place in those countries.
The portfolio's share of equity instruments shall constitute 50-70 percent, whilst the share of interest bearing instruments shall constitute 30-50 percent of the portfolio. 80-90 percent of equity- and fixed-income portfolios, respectively, shall be placed in Norway, whilst 10-20 percent shall be placed in Denmark, Finland and Sweden.
Folketrygdfondet may own up to 15 percent of the share capital or the basic capital in any single company in Norway. In Denmark, Finland and Sweden Folketrygdfondet may own shares representing up to 5 percent of total equity capital and basic capital in any single company.
The Ministry of Finance has determined a strategic benchmark portfolio which consists of 40 percent interest bearing instruments and 60 percent equity instruments.
The Ministry of Finance also has settled that prospective relative volatility on annualized basis shall be 3 percentage points maximum.