GAPP Principle 16

The governance framework and objectives, as well as the manner in which the SWF’s management is operationally independent from the owner, should be publicly disclosed.

Status: Implemented

The governance framework is transparent and publicly disclosed. The overall framework and objective of the asset management of the GPFG are established by Parliament and laid down in the Government Pension Fund Act and the Norges Bank Act. More specific elements of the division of roles and responsibilities between owner and manager are set out in the management mandate issued by the Ministry of Finance (asset owner) to Norges Bank (operational manager), and publicly disclosed. The mandate specifies that Norges Bank shall make investment decisions and exercise ownership rights independently of the Ministry.

The Ministry submits an annual report to Parliament (white paper) on the management of the GPFG. In addition to presenting the financial performance of the Fund, the report includes discussions of the foundations for and recent developments in the investment strategy. The report to Parliament further provides an account of the governance of the Fund. The Fund reports are publicly available on the Ministry website.

Sources: Norges Bank Act, Government Pension Fund Act, GPFG mandate, Ministry of Finance’s website.