Norway’s Norges Bank Investment Management (NBIM), which is responsible for the investments of the Government Pension Fund Global (GPFG), has completed phasing out companies in the ‘offshore drilling and other services’ subsector.
Companies that operate in this sector are no longer included in the benchmark index or investment universe for the GPFG.
In a letter, NBIM confirmed to the Norwegian Ministry of Finance that is has completed phasing out offshore drilling firms from the pension scheme.
This follows a letter from the ministry in December 2021 that stated companies in the subsector should no longer be included in the GPFG.
The ministry made changes to the management mandate’s provisions on the benchmark index for equities (Section 2-3, Sub-section 6) and investment universe (Section 2-1, Sub-section 2 and new Sub-section 5).
The Ministry also set out a schedule for phasing these companies out of the equity benchmark.
Alongside confirmation that it has completed the phasing out “according to plan”, NBIM stated that it will monitor companies on their classification and reclassification of their operations.
In its letter, NBIM said: “We will continue to monitor the classification of companies and manage reclassifications in such a way that relevant companies are removed from the investment universe 12 months after reclassification.”
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