Case

Norway's Government Pension Fund Global

Norges Bank Investment Management applies a rebalancing rule for the equity share: when the share drifts more than 4 percentage points from target, it must be rebalanced. The fund is managed against a benchmark set by the Ministry of Finance.

Industry
Sovereign wealth fund
Frameworks applied
Modern portfolio theory and the efficient frontierThe investment management cycleThree approaches to ESG investing
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Frameworks applied

This case is read through the frameworks below.

  • Modern portfolio theory and the efficient frontierWhen spreading savings across several assets, which portfolio should an individual investor choose to get the highest expected return for the risk they can accept?
  • The investment management cycleWhen managing their own savings, what steps should an individual investor follow, from setting goals and risk appetite to monitoring and adjusting the portfolio?
  • Three approaches to ESG investingWhen setting a fund's investment policy, should the investment committee exclude, integrate or engage with companies to build ESG criteria into its decisions?

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Norges Bank Investment Management (2018) The rule for rebalancing the equity share in the Government Pension Fund Global. Submission to the Ministry of Finance.No DOInbim.noSource page
  2. Norges Bank Investment Management (2025) Government Pension Fund Global: annual report 2025 (web report). Annual report.No DOInbim.noSource page