Folketrygdfondet chief executive, Kjetil Houg, has argued that the Government Pension Fund Norway (GPFN) plays a central role in the domestic economy, describing it as “a cornerstone of the Norwegian business sector".

At the annual hearing of the Government Pension Fund to the Storting’s Finance Committee, Houg said the GPFN is currently the largest institutional investor on the Oslo Stock Exchange, holding more than 5 per cent of the market and over 10 per cent of the main index.

It is also the largest shareholder in 11 listed Norwegian companies.

Houg stressed that the limited size of the Norwegian capital market means GPFN often plays a unique “anchoring” role.

In companies where it is the dominant shareholder, he said it is unlikely that other domestic investors could step in to replace its position, particularly as ownership structures evolve and some firms risk drifting away from the Oslo market.

Beyond its role as a cornerstone investor, he emphasised the GPFN’s function in safeguarding minority shareholders and supporting trust in the market.

In takeover situations, he noted that other institutional investors often exit quickly, prioritising liquidity over long-term engagement. By contrast, the GPFN maintains a longer horizon, balancing financial returns with active ownership where needed to support value creation.

Houg said: “Our assessment is always financial, but we also emphasise the long-term perspective. If we consistently leave it to other owners to realise a company’s value potential, this will undermine the fund’s interests over time.

“In such cases, it may sometimes be a better solution for us, and others who are major owners on the stock exchange, to contribute to value creation in the companies by ensuring they have good management, good access to long-term capital and clear expectations regarding value creation.”

He also pointed to differing Nordic ownership models.

For example, Norway and Finland have relatively high levels of state strategic ownership, Sweden has stronger influence from private investment companies, and Denmark has foundation-led ownership structures.

He suggested Norway’s mixed model of public and private institutional investors has worked well.

Looking ahead, Houg said he would welcome more long-term private strategic ownership in Norwegian listed companies, arguing this could further strengthen stability and support sustainable value creation in the market.

---