Intro
Acknowledgements
Contents
1 Introduction
1.1 The Government Pension Fund Global (GPF-G) is a Norwegian SWF
1.2 The Risk-Return Trade Off in Investments
1.3 Investments Abroad
1.4 Investment Management Performance
1.5 Is the GPF-G Sufficiently Sustainable, Ethical and Profitable?
References
2 Natural Resource Sustainability
2.1 Non-renewable Natural Resources
2.2 The Rationale for a Petroleum Fund: A Windfall Gain
2.2.1 The Tempo Commission
2.2.2 What is the Fair Share of Future Generations in Resource Wealth?

2.2.3 Time Transformation of Income Through Global Capital Markets
2.2.4 Constraints on Investment by the GPF-G
2.2.5 The Goals and Constraints of SWFs
2.3 Petroleum Wealth
2.3.1 Windfall Resource Gains-Some International Experience
2.3.2 The 1970s and 1980s: Expectations Followed by Increased Uncertainty
2.3.3 The 1990s: Expansion of the Petroleum Wealth
2.3.4 The 2000s: SWF Growth and Professionalization of Wealth Management
References
3 The Economics and Politics of SWFs
3.1 Limiting Spending: Norway's Fiscal Rule

3.1.1 Implications of the Low-Yield Environment Since 2008
3.1.2 Investors Chasing Incremental Yields
3.2 How to Spend Petroleum Wealth-Procurement Versus Handouts
3.2.1 How the Wealth is Spent
3.2.2 Effects of the SWF on Income Distribution
3.2.3 Could Transfers Strengthen the Public's Involvement?
References
4 Investment in Practice
4.1 Geography and Asset Class Allocation
4.1.1 Asset Classes, Factors, and Financial Risk
4.1.2 Political Risk Across Asset Classes and Space
4.2 The Management of Large Funds
4.2.1 How Investment Markets Work

4.2.2 The Time Horizon of the GPF-G
4.2.3 Implications of Size for an Investment Fund
4.2.4 Large Size Tends to Dampen Returns
4.2.5 Stylized Facts of Active Fund Management
4.3 Asset Allocation, Management Style, and Returns
4.3.1 Liquidity Needs and Types of Funds
4.3.2 Is Cash Still King?
4.3.3 'Best-Practice' Factors in Financial Management
References
5 The Ethics of Investment
5.1 The Ethics of Investment
5.1.1 Ethics Based on What One Could Do
5.1.2 Ethics Based on What One Should Do
5.1.3 The Ethical Regulation of the GPF-G

5.1.4 Practical Aspects of Ethics Work in Relation to the GPF-G
5.2 Implications for SWFs of Socially Responsible Investment (SRI)
5.2.1 The UN Global Compact
5.2.2 The OECD Guidelines on Corporate Governance
References
6 Risks and Uncertainty
6.1 Slumps, SWFs and the Elusiveness of Financial Risk
6.1.1 Demands on Liquidity in a Slump
6.1.2 Finance Is not Physics
6.1.3 The Elusiveness of Financial Risk
6.2 Geopolitics and Risks of Expropriation and Confiscation
6.2.1 Geopolitical Risks Facing SWFs

6.2.2 The Political Economy of 'Envy'
Confiscation and Expropriation Risk