Norwegian Sovereign Wealth Funds Consider Even Higher Levels of Transparency | Asset owners

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Norway’s $1.16 trillion sovereign wealth fund, Government Pension Fund Global, was ranked second on the list of most transparent funds according to the Global Pension Transparency Benchmark (GPTB).

But now he says he has his eye on the top spot in terms of transparency.

The GPTB, which was launched in February 2021, measures the transparency of disclosures of 15 pension systems across the value-driving measures of cost, governance, performance and responsible investing.

Ranking countries on public disclosure of key elements of value creation For the five largest pension fund organizations in each country, the GPTB revealed for the first time the scores of the 75 underlying funds in these countries.

Carine Smith Ihenacho

Norway Bank

The Government Pension Fund Global, often referred to as the “Oil Fund” because it derives its financial support from the country’s oil industry, is managed by Norges Bank Investment Management (NBIM), part of the central bank of Norway and its Ministry finances.

Carine Smith Ihenacho, head of governance and compliance at NBIM, said Asian investor that while his team is satisfied with the result of the benchmarking analysis, it still falls short of its goal of “being the most transparent fund in the world”.

“The Government Pension Fund Global is owned by the people of Norway and our mission is to create and preserve wealth for future generations. Being transparent in what we do is therefore of the utmost importance to us and is what our owners expect,” said Ihenacho.

NBIM has worked hard for a long time to maintain transparency in its management of Norway’s wealth by keeping its members and the general public informed about information about its holdings, performance and responsible investments.

“Our expectations for the businesses we own are published and available to everyone through our 17 different expectation documents,” Ihenacho said.

In its latest initiative, NBIM has improved the ability of its members to vote at general meetings.

“We now make our vote public five days before the meeting to create transparency and predictability in our actions. We see this as an important step in becoming even more transparent,” she said.

HEAD OF CANADIAN FUNDS

Three Canadian pension funds were among the top five funds overall, according to the benchmark GPTB index. Canada also topped the list of countries in 2022 for the second consecutive year.

RPC Investments claimed first place on the list of most transparent funds, while the Public Sector Pension Investment Board (PSP) of Canada and the Ontario Teachers’ Pension Plan (RREO) obtained respectively 3 and 4 places.

Source: Global Pension Transparency Benchmark Top 10

CPP Investments, which manages more than $420 billion in assets, received the highest score overall as well as the highest score for governance insights.

The Dutch fund, Stichting Pensioenfonds Zorg en Welzijn (PFZW), tops the list for costs; CalPERS for performance; and Sweden’s AP4 was the top fund for responsible investment disclosure transparency.

According to the GPTB report, there is ample evidence that a lack of transparency negatively impacts relationships and organizations of all types, whether individuals, governments, companies or funds. pension.

“Transparency is the right thing to do and the smart thing to do. Congratulations to the top-ranked GPTB funds for leading the way in transparency and quality reporting,” said Mike Heale, Business Development Manager at CEM Benchmarking.

Amanda White, editor of Top1000funds.com, said the decision to reveal underlying fund scores for the first time this year was to highlight the importance of clarity and openness in fund disclosure. pension.

“We believe that transparency on these factors – cost, governance, performance and responsible investing – is important to improving the results of pension funds around the world,” White said.

¬ Haymarket Media Limited. All rights reserved.

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