Norway's Norges Bank Investment Management (NBIM), which is responsible for the investments of the Government Pension Fund Global, has published its strategy plan for 2023 to 2025.

The investment manager’s new strategy builds on its revised strategy plan for 2021 to 2022.

It stated that it will continue to exploit the fund’s characteristics as a large and long-term investor to achieve the highest possible returns in a responsible manner.

"We have made a detailed plan which outlines how we intend to become the leading large investment fund in the world,” said NBIM CEO, Nicolai Tangen.

“We look forward to implementing this plan over the next three years."

NBIM’s strategy plan has been divided into five areas: Performance, technology, operational robustness, people, and communications.

On performance, NBIM noted that the Ministry of Finance decides the overall investment framework through the investment manager’s management mandate, central to which is the benchmark index consisting of 70 per cent equities and 30 per cent fixed income.

However, NBIM said that it believed investment opportunities would diversify the fund beyond the reference index, particularly unlisted assets.

The three main investment strategies are pursued across equity, fixed income, and real asset management.

NBIM said during the strategy period it will strengthen its long-term mindset, be patient, and vary active risk as market conditions change.

It will target a real estate portfolio of 3-7 per cent of the fund, consisting of listed and unlisted real estate under a combined strategy.

The manager will also look to continue to invest in renewable energy infrastructure.

Under its strategy, NBIM will push for mandatory corporate sustainability reporting, and environmental and social due diligence to improve company performance and the quality and availability of ESG data.

It will also increase its engagement in industry initiatives and with emerging market standard setters to promote best practice more effectively.

NBIM revealed that it plans to develop its ESG database and analytical tools, and develop its principles for climate risk management and integrate climate risk measurement in its portfolio analysis.

In the other categories, NBIM said that it wanted to become the leading technology organisation in investment management; seek to attract, develop and retain the best people; and be the most transparent investment fund in the world.

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