Norway's Government Pension Fund-Global, Oslo, is tops when it comes to transparency and accountability among sovereign wealth funds, according to a recent ranking from the Peterson Institute for International Economics.
The 3 trillion Norwegian kroner ($514 billion) oil fund earned an overall score of 97 out of 100 from Edwin M. Truman, who has authored the rankings since 2008. The Norwegian fund bested other government pension funds — the $218.5 billion California Public Employees' Retirement System, Sacramento, and the NZ$17.2 billion (US$12.9 billion) New Zealand Superannuation Fund, Auckland — which scored 95 and 94, respectively.
In the previous ranking in April 2008, Norway scored 92, good for a four-way tie for fourth place. Its recent ascent came from improvements in what Mr. Truman dubs “behavior” as part of the rankings — specifically, Norway makes public its policies on risk management, use of derivatives and leverage, and portfolio rebalancing.
The latest ranking appears in a new book by Mr. Truman — “Sovereign Wealth Funds: Threat or Salvation?” — published in September by the Peterson Institute.
Mr. Truman was traveling in Asia and could not be reached for further information.