The Norway model in perspective

Abstract

Our 2012 paper on the Norway Model spotlighted that country’s sovereign wealth fund. We argued that Norway provides a coherent and compelling approach to managing longterm pools of assets. Since then, the Norwegian Government Pension Fund has grown in scale and complexity, and its structure has evolved. Meanwhile, other models for asset management have been put forward. In this article we review Norway’s investment strategy in the light of the last decade’s experience, put it in a broader context by comparing Norway with alternative approaches, and re-examine the Fund’s commitment to responsible investing. Since we wrote our earlier paper, environmental and social issues have come to the fore and there is still much to learn from the Norway Model.