The Ministry of Finance has changed the Regulation on the Government Petroleum Fund. The Fund’s investment in any one company is capped at 3 per cent of the share capital or of the voting shares. Until now only the total investment in any one company was capped at 1 per cent.

Norges Bank (the Central Bank), who is investing the Fund on behalf of the Ministry of Finance, has requested the cap of total stock ownership to be increased to 3 per cent. Norges Bank uses several external fund managers for the Fund’s equity investments. In order not to exceed the cap on total stock ownership in any one company, Norges Bank has to limit each fund manager’s share more than desired.

The Government Petroleum Fund will still be a financial and not a strategic investor. The increase of the cap on ownership to 3 per cent does not imply any change in policy in this respect.

The Environmental Fund

In 1999, the Parliament decided to establish an Environmental Fund of NOK 1 bn as a separate part of the Petroleum Fund. It has taken some time to gather data on companies’ environmental records. The Fund will be established in connection with the last transfer to the fund this year.

The Fund may be invested in companies assumed to have low negative impact on the environment. The Fund may also be invested in other companies, provided that such companies have issued an environmental report of a certain quality or have certified a certain share of their activity. The Ministry of Finance will use Ethical Investment Research Service (EIRIS) to gather environmental data.

The Environmental Fund will be invested in the same countries as the ordinary Government Petroleum Fund. However, environmental data may not be available for all countries. Data will be available for the European and the North-American countries currently in the Fund’s benchmark. The Ministry of Finance will consider the possibility of including Asia and Oceania closer to year-end.