Allowing Norway’s Government Pension Fund Global (GPFG) to invest in unlisted equities would be a “natural evolution”, Norges Bank has said.

"It is our assessment that permitting investments in unlisted equities would be a natural evolution of the investment strategy,” Norges Bank Executive Board chair, Ida Wolden Bache, said.

The bank stated that an increasingly larger share of global value creation takes place in the unlisted market.

“We believe that such an opening could give higher returns for the fund over time. We think it will be possible to invest in unlisted equities in a way that meet our expectations on transparency and responsibility,” Wolden Bache said.

Norges Bank said the GPFG will approach investment opportunities and build competence gradually, should the Ministry of Finance permit the fund to invest in unlisted equities.

“We have good experience with a gradual approach from the fund's other unlisted investments,” Norges Bank said.

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