The Norway Model

17 Pages Posted: 4 Oct 2011 Last revised: 20 Mar 2016

David Chambers

University of Cambridge - Judge Business School, Department of Finance & Accounting

Elroy Dimson

University of Cambridge - Judge Business School; London Business School

Antti Ilmanen

AQR Capital Management

Date Written: October 10, 2011

Abstract

The Norwegian Government Pension Fund Global was recently ranked the largest fund on the planet. It is also highly rated for its professional, low-cost, transparent, and socially responsible approach to asset management. Investment professionals increasingly refer to Norway as a model for managing financial assets. We present and evaluate the strategies followed by the Fund, review long-term performance, and describe how it responded to the financial crisis. We conclude with some lessons that investors can draw from Norway’s approach to asset management, contrasting the Norway Model with the Yale Model.

Keywords: Sovereign wealth funds, endowment, pensions, Norway, Government Pension Fund Global

JEL Classification: E44, F21, G15, G23, G28, J26

Suggested Citation

Chambers, David and Dimson, Elroy and Ilmanen, Antti, The Norway Model (October 10, 2011). Journal of Portfolio Management, Vol. 38, No. 2, 2012, pages 67–81. Available at SSRN: https://ssrn.com/abstract=1936806 or http://dx.doi.org/10.2139/ssrn.1936806

David Chambers

University of Cambridge - Judge Business School, Department of Finance & Accounting ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
44 (0)1223 339700 (Phone)

Elroy Dimson (Contact Author)

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 20 7000 8212 (Phone)
+44 700 607 7390 (Fax)

London Business School ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom
44 20 7000 7000 (Phone)
44 700 607 7390 (Fax)

Antti S. Ilmanen

AQR Capital Management ( email )

United Kingdom
+447887475184 (Phone)

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