The Norway Model In Perspective

The authors' 2012 article on the Norway model spotlighted that country's sovereign wealth fund. They argued that Norway provides a coherent and compelling approach to managing long-term 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, the authors 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 reexamine the fund's commitment to responsible investing. Since the authors wrote their earlier paper, environmental and social issues have come to the fore, and there is still much to learn from the Norway model.