The largest oil fund in the world, the Norges Bank Investment Management (NBIM) has published its guidelines and information regarding last year. According to the CEO of the fund, Mr. Yngve Slyngstad, the fund made 49 divestments last year. One of the biggest reasons for divestments were the environmental risks in the portfolio company.
– Our fund has a long-term perspective in responsible investing and we are a large, international investor. For us, the global standards are important in our valuation process. For example the UN Global Compact and OECD principles for international companies are examples for us that the company is having responsible business processes and management. We have invested in over 8000 companies in 82 different countries so they are important guidelines for us. During last year we have also developed our prosesses regarding the environmental issues, Mr. Slyngstad said.
– Last year we have increased our investments in renewable energies, energy efficiency and efficiency in the natural resources. And this is part of our investment strategy that we pay more attention to climate change issues, water mangement and children rights. The other elements in our investment strategy are: equal treatment of shareholders, shareholder influence and board accountability, legitimate and well-functioning markets and risk management.
The oil fund market value is 6534 billion Norwegian kronor and 60 % are in equities, 35 % in fixed income and 5 % in real estate. 45 % of the fund is invested in Europe, 35 % in North America, 16,5 % in Asia and 3,5 % rest of the world. According to the governace of the fund, the fund can have max 10 per cent of the voting shares in a company. The return of the fund has been 5,7 per cent from the establishment in 1998 to the end of 2013.