New exceptions for unlisted shares

The Ministry of Finance has made two changes to the mandate for the management of the Government Pension Fund Norway (GPFN) regarding the handling of unlisted instruments allocated to the portfolio.
Administrerende direktør Kjetil Houg, foto
Foto: Jarle Nyttingnes

The new exceptions apply in connection with planned stock market listings that are not carried out or other corporate events, such as those leading to the delisting of the company's shares. Previously, Folketrygdfondet was required to sell unlisted financial instruments "immediately," while the new exception allows for ownership of unlisted securities (cf. §3-5, 2nd paragraph, in the Mandate for the management of the Government Pension Fund Norway).

"This mandate change will strengthen our position and ability to safeguard the fund's financial interests," says CEO Kjetil Houg.

However, Folketrygdfondet must ensure a thorough review prior to each investment in unlisted companies where the board has expressed an intention for listing. In addition, a sales plan must be established, including how the shares can be sold in a appropriate and cost-effective manner, as well as an ongoing risk assessment related to the investment (cf. §4-12, 2nd paragraph).

The change came into effect on January 19, 2024.