Suchergebnisse

This article is an attempt to assess the functioning of the Norwegian Government Pension Fund Global in relation to the degree of implementation of the concept's objectives of sustainable development. The aim of the article apart from this assessment is to determine significance and the benefits of the concept to the Fund and the country. To apply the hypothetical-deductive method. The concept of sustainable development has a relatively long history in Norway. Sustainable development is not just a dead regulation, but a way of thinking Norwegians. Social awareness of balance need causes of naturalness of reconciling the economic, social and environmental interest in economy. On the one hand, Fund acting within state structures, is the implementing tool of sustainable development policy. On the other, the Fund uses assumptions of the concept to achieve sustainable economic benefits. Maturity sustainable activities of the Fund contributes to the achievement of competitive advantage among other funds. The Fund is the largest Government Pension Fund in the world in terms of net assets, of which the largest part of the market value is an inflow of capital from outside. Investors deposit their funds in it because they trust to management style. Due to the global character, size and geographical or investment diversification, manifestation of sustainable practices reaches to wide-spectrum of recipients. The range of message builds the Fund and country reputation that actively suggests the only one way to sustainable development.

This article is an attempt to assess the functioning of the Norwegian Government Pension Fund Global in relation to the degree of implementation of the concept's objectives of sustainable development. The aim of the article apart from this assessment is to determine significance and the benefits of the concept to the Fund and the country. To apply the hypothetical-deductive method. The concept of sustainable development has a relatively long history in Norway. Sustainable development is not just a dead regulation, but a way of thinking Norwegians. Social awareness of balance need causes of naturalness of reconciling the economic, social and environmental interest in economy. On the one hand, Fund acting within state structures, is the implementing tool of sustainable development policy. On the other, the Fund uses assumptions of the concept to achieve sustainable economic benefits. Maturity sustainable activities of the Fund contributes to the achievement of competitive advantage among other funds. The Fund is the largest Government Pension Fund in the world in terms of net assets, of which the largest part of the market value is an inflow of capital from outside. Investors deposit their funds in it because they trust to management style. Due to the global character, size and geographical or investment diversification, manifestation of sustainable practices reaches to wide-spectrum of recipients. The range of message builds the Fund and country reputation that actively suggests the only one way to sustainable development.

Our report on "Long term market outlook" discussed the future market conditions both in the bond and equity markets, where the Pension Fund is currently invested, and in alternative asset classes, where the Fund may invest in the future. Here we summarise the findings and employ a simulation modelling framework to determine how changes in the investment strategy can be expected to affect the return distribution for the entire portfolio. We are looking both at the expected return and at different measures of risk exposure. The basic assumptions used in the modelling exercise are presented in section 1 below. We provide numerical details on the macroeconomic scenarios introduced in the Market Report, and specify the covariance matrices that will be assumed in each scenario. In section 2 we consider the equity/bond ratio in the existing benchmark portfolio, and the regional weightings within the equity and bond benchmarks. This analysis essentially confirms the conclusions from our 2005 Strategy Report. In section 3 we consider two market segments that are not currently part of the equity or bond benchmark. The small cap segment in the equity markets is the largest segment of listed markets outside the benchmark. We believe that the diversification benefits outweighs the operational burdens and recommend that small cap should now be included in the equity benchmark. The high yield segment of the bond markets is much smaller and heavily biased towards USD issues. But the expected return looks attractive, even taking the risk into account. We thus believe that the Fund should be invested in this segment. Replicating the Lehman High Yield index may on the other hand be a bad idea, because many of the papers in the index are difficult or impossible to buy, and because pricing may not always reflect risk in a reasonable way. We therefore do not recommend including the high yield segment in the bond benchmark. In section 4 we consider new asset classes. Real estate is the largest asset class where the Fund is currently not invested. We believe that real estate investments will provide attractive diversification benefits in the portfolio and recommend that it be included in the Fund's investment strategy. The size of the market limits the exposure the Fund can realistically obtain, however. Infrastructure investments have very similar characteristics to real estate, but the market is so far substantially smaller. We are proposing a common allocation to these two asset classes, with a strategic target of 10 percent of the total Fund. This is in line with other large investment funds, but we realise that this target will not be reached in the first few years. The Fund shall need to set up a new investment organisation and gradually build its real estate and infrastructure portfolios. Private equity is another asset class commonly included in the strategic allocations of large funds. We believe that returns on private equity are highly correlated with returns in the listed equity markets, and that the diversification benefits are limited. Furthermore, we do not find any evidence that an average investor can expect higher returns in the private equity markets. Private equity consequently looks only moderately attractive in the modelling exercise. We still recommend a strategic target of 5 percent of the Fund invested in this asset class. The reason is that returns vary substantially between managers ("leading partners") and that the differences tend to be persistent. A large investor such as the Pension Fund has a better probability of identifying and getting access to above average quality managers, and will then have a fair possibility of earning an excess return.

Our report on "Long term market outlook" discussed the future market conditions both in the bond and equity markets, where the Pension Fund is currently invested, and in alternative asset classes, where the Fund may invest in the future. Here we summarise the findings and employ a simulation modelling framework to determine how changes in the investment strategy can be expected to affect the return distribution for the entire portfolio. We are looking both at the expected return and at different measures of risk exposure. The basic assumptions used in the modelling exercise are presented in section 1 below. We provide numerical details on the macroeconomic scenarios introduced in the Market Report, and specify the covariance matrices that will be assumed in each scenario. In section 2 we consider the equity/bond ratio in the existing benchmark portfolio, and the regional weightings within the equity and bond benchmarks. This analysis essentially confirms the conclusions from our 2005 Strategy Report. In section 3 we consider two market segments that are not currently part of the equity or bond benchmark. The small cap segment in the equity markets is the largest segment of listed markets outside the benchmark. We believe that the diversification benefits outweighs the operational burdens and recommend that small cap should now be included in the equity benchmark. The high yield segment of the bond markets is much smaller and heavily biased towards USD issues. But the expected return looks attractive, even taking the risk into account. We thus believe that the Fund should be invested in this segment. Replicating the Lehman High Yield index may on the other hand be a bad idea, because many of the papers in the index are difficult or impossible to buy, and because pricing may not always reflect risk in a reasonable way. We therefore do not recommend including the high yield segment in the bond benchmark. In section 4 we consider new asset classes. Real estate is the largest asset class where the Fund is currently not invested. We believe that real estate investments will provide attractive diversification benefits in the portfolio and recommend that it be included in the Fund's investment strategy. The size of the market limits the exposure the Fund can realistically obtain, however. Infrastructure investments have very similar characteristics to real estate, but the market is so far substantially smaller. We are proposing a common allocation to these two asset classes, with a strategic target of 10 percent of the total Fund. This is in line with other large investment funds, but we realise that this target will not be reached in the first few years. The Fund shall need to set up a new investment organisation and gradually build its real estate and infrastructure portfolios. Private equity is another asset class commonly included in the strategic allocations of large funds. We believe that returns on private equity are highly correlated with returns in the listed equity markets, and that the diversification benefits are limited. Furthermore, we do not find any evidence that an average investor can expect higher returns in the private equity markets. Private equity consequently looks only moderately attractive in the modelling exercise. We still recommend a strategic target of 5 percent of the Fund invested in this asset class. The reason is that returns vary substantially between managers ("leading partners") and that the differences tend to be persistent. A large investor such as the Pension Fund has a better probability of identifying and getting access to above average quality managers, and will then have a fair possibility of earning an excess return.

In this review, we evaluate the active management by Norges Bank Investment Management (NBIM) of the Norwegian Government Pension Fund Global (the Fund). In this executive summary, we provide an overview of the main observations and suggestions. More details on the quantitative and qualitative analysis, the methodology, and our observations and suggestions can be found in the full version of the report.

Access to finance is crucial if we are to achieve the fundamental transition of our time: securing a safe and just society operating within the planetary boundaries. In the era of global market capitalism and deregulation, Sovereign Wealth Funds (SWFs) offer one of the few public economic institutions capable of injecting ecological and social values into global markets. This article undertakes a case study of one of the world's largest SWF, the Norwegian Government Pension Global (The Fund). The Fund is well-known for its Ethical Guidelines recommending exclusion of companies based on products and conduct as well as the Fund's public statements when withdrawing from companies. Still, the ethical basis of overlapping consensus leads to responding to public opinion and media controversy when considering divestment, rather than undertaking due diligence beforehand. In addition, and not well known, more firms have been excluded from the Fund based on the financial risk against the portfolio than based on the Ethical Guidelines. In this article we discuss the basis of both the Ethical Guidelines and of the financial risk management of the portfolio. Still, the majority of the Fund's investments are on an unsustainable path of 'business as usual'. A principal thesis of this article is the paradox that the more unsustainable 'business as usual' becomes, the importance of financial risk assessment increases and the relevance of the Ethical Guidelines decreases. ; Der Zugang zu Finanzmitteln ist entscheidend, wenn wir den grundlegenden Wandel unserer Zeit erreichen wollen: die Sicherung einer sicheren und gerechten Gesellschaft, die innerhalb der Kapazitäten unseres Planeten funktioniert. Im Zeitalter des globalen Marktkapitalismus und der Deregulierung bieten Staatsfonds (Sovereign Wealth Funds, SWFs) eine der wenigen öffentlichen ökonomischen Institutionen, die in der Lage sind, ökologische und soziale Werte in die globalen Märkte zu bringen. Dieser Artikel enthält eine Fallstudie über einen der weltweit größten Staatsfonds, den staatlichen norwegischen Pensionsfonds (The Government Pension Fund Global). Der Fonds ist bekannt für seine Ethikrichtlinien, die den Ausschluss von Unternehmen aufgrund von Produkten und Verhaltensweisen empfehlen, sowie für die öffentlichen Erklärungen des Fonds beim Rückzug aus Unternehmen. Die ethische Basis eines übergreifenden Konsenus führt dazu, dass die öffentliche Meinung und Mediendebatten bei der Prüfung von Veräußerungen berücksichtigt werden, anstatt vorher eine sorgfältige Prüfung vorzunehmen. Weitgehend unbekannt ist, dass darüber hinaus mehr Unternehmen aufgrund des finanziellen Risikos des Portfolios als aufgrund der Ethikrichtlinien aus dem Fonds ausgeschlossen wurden. In diesem Artikel behandeln wir die Grundlagen sowohl der Ethikrichtlinien als auch des finanziellen Risikomanagements des Portfolios. Dennoch befindet sich der Großteil der Investitionen des Fonds auf einem nicht nachhaltigen Weg des "business as usual". Eine Hauptthese dieses Artikels ist das Paradoxon, dass je unhaltbarer das "business as usual" wird, desto mehr nimmt die Bedeutung der finanziellen Risikobewertung zu und die Relevanz der Ethikrichtlinien ab.

Artículos en revistas ; El objetivo de este trabajo consiste en presentar el Fondo Gubernamental de Pensiones de Noruega (GPFG), el fondo soberano más grande del mundo, caracterizado por unas directrices éticas pioneras para la elección de inversiones, basadas en el ejercicio activo de los derechos de propiedad y la exclusión de empresas de su cartera. Dos razones importantes para la exclusión de una firma son causar graves daños medioambientales y producir carbón , que conlleva al destierro de una empresa de la cartera de inversiones. A pesar de las intenciones nobles, el GPFG está repleto de inconsistencias, especialmente debido a que sus fondos se nutren de la explotación de hidrocarburos que contribuyen a las emisiones de efecto invernadero. Además, toda la política medioambiental noruega está fragmentada y sufre numerosas contradicciones. ; This paper aims at presenting the Norwegian Government Pension Fund Global (GPFG), the world s largest Sovereign Wealth Fund, characterized by its pioneering ethical guidelines for investment decisions, based on active ownership and the exclusion of firms from its portfolio. Two major reasons for the exclusion of a company is severe environmental damage and coal production , leading to the banishment of many companies from the Fund s holdings. Despite the noble intentions, the GPFG is loaded with inconsistencies, especially because its resources come from the exploitation of fossil fuels that contribute to global greenhouse gas emissions. Moreover, the entire Norwegian environmental policy is fragmented and suffers from contradictions. ; info:eu-repo/semantics/publishedVersion

This is an Open Access Article. It is published by Wiley under the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/ ; Sovereign Wealth Funds (SWFs) have an increasing presence in the global financial ecosystem, principally through their investments in equities, which, in turn, may influence HRM. This study examines the influence of the world's largest SWF, the Norwegian Government Pension Fund-Global (NGPF-G), on employment in its UK investee firms. We find that firms with NGPF-G investment are significantly less likely to reduce their demand for labour, more specifically in the immediate aftermath of the 2008 financial crisis. When a drop in the demand for labour does occur, it is less extreme when compared to similar organizations without a NGPF-G shareholding, and this is evident even in the case of relatively small NGPF-G investments. These findings are in line with the fund's objective of promoting corporate sustainability and Norwegian values. We draw out the key implications of our findings for HR practice.

THE HUGE POST-WAR TRANSFER OF FINANCIAL ASSETS FROM INDIVIDUALS TO INVESTMENT INSTITUTIONS HAS UNTIL RECENTLY ATTRACTED REMARKABLY LITTLE PARLIAMENTARY ATTENTION. YET THE IMPLICATIONS FOR THE BRITISH POLITICAL ECONOMY OF THIS WHOLESALE CHANGE IN THE PATTERN OF OWNERSHIP ARE FAR-REACHING. OVER THE PAST 25 YEARS INTERESTS IN LIFE ASSURANCE AND PENSION FUNDS-THE TWO GREAT ENGINES OF TAX-SUBSIDISED THRIFT THAT OPERATE IN THE CAPITAL MARKETS-HAVE GROWN FROM AROUND ONE FIFTH OF PERSONAL FINANCIAL ASSETS TO MORE THAN HALF. TODAY THESE INSTITUTIONS CONTROL OVER POUND135 BILLION-WORTH OF INVESTMENTS; AND BY FAR THE GREATER PART OF THAT IS EARMARKED TO MEET PENSION LIABILITIES. SIR HAROLD WILSON, IN HIS CAPACITY AS CHAIRMAN OF THE COMMITTEE ON THE WORKINGS OF THE FINANCIAL INSTITUTIONS, MAY HAVE BEEN EXAGGERATING WHEN HE CLAIMED THAT THE PENSION FUNDS COULD BE "TRANSFORMING THE NATURE OF OUR SOCIETY MORE THAN ANY GOVERNMENT WOULD DARE TO DO EVEN IF IT HAD A LARGE MAJORITY IN PARLIAMENT". BUT THERE IS NOT MUCH DOUBT THAT THE GROWTH OF THIS HUGE POOL OF FINANCIAL CAPITAL HAS AN IMPORTANT BEARING ON ECONOMIC AND SOCIAL VALUES. TWO PERTINENT QUESTIONS THEREFORE NEED TO BE ASKED. ARE THE CRITERIA ON WHICH THE MONEY IS MANAGED COMPATIBLE WITH THE WIDER NATIONAL INTEREST? AND ARE MANAGERS AND TRUSTEES ADEQUATELY ACCOUNTABLE TO THE ULTIMATE BENEFICIARIES, THE PRESENT AND FUTURE PENSIONERS?