Mandate –Strategy Council 2010

The purpose of the Government Pension Fund Global is to support government savings to finance the pension expenditure of the National Insurance Scheme and long-term consideration in the spending of government petroleum revenues. The goal for the management of the Fund is to maximise international purchasing power with moderate risk. In this way, we aim to ensure that future generations will be able to derive the maximum possible benefit from our national savings. The goal of good financial return is closely linked to the ambition to be a responsible investor.

 

Purpose of the Strategy Council

 

• The purpose of the Strategy Council is to strengthen both the legitimacy and foundation of the long term investment strategy for the GPFG.
  
• Through independent and critical reviews, the Council will give advice on how to develop the strategy further, increase transparency and encourage debate on important decisions related to the investment strategy for the Fund.
  

Measures

 

• The Council members shall prepare a public report and give a presentation of the report.
  
• The report shall include a review of the relevance of the analysis of the investment strategy that is presented in the annual reports to Parliament (Stortinget), and advice on how to develop the analysis further. In particular, there should be an evaluation of whether the discussion of the foundation of the fund’s investment strategy, cf. section 2.1 and 2.2 of the Report no. 10 (2009-2010) to the Storting, is appropriate and relevant.
  
• The primary focus of the report shall be forward-looking.
  
• The report shall not give an evaluation of the Fund’s role in economic policy.
  
• The report shall not give an evaluation of Norges Bank’s operational management of the GPFG.
  
  
  

Priorities for the 2010 report

 

• The 2010 report will be the first report prepared in this format. This report should give an overview of strategic challenges on the aggregate level. A natural starting point for the Council’s report is Norges Bank’s letter to the Ministry of Finance 6 July 2010.
  
• The report should be presented no later than 1 December 2010.