The Scandinavian Stand-Off: A Comparison of the Norwegian and Swedish Government Pension Funds' Investment Performance and Management

Abstract

This thesis examines the similarities and differences between the Swedish and the Norwegian National Pension Funds, the Swedish National Pension Funds (AP) and the Government Pension Fund Global (GPFG), respectively. We have compared the funds along two dimensions: institutional structure and investment management on one side and investment performance on the other. Ultimately, this thesis examines whether the different underlying purposes of the funds, which affect the investment management, can explain differences in performance. Additionally, we have linked the funds’ investment management to the Endowment model and the OECD best practices for pension funds. We find that the differences in institutional structure and management has led to differences in investment performance. Overall, we find that GPFG is the most cost-efficient and achieves the best risk-return relationship, while the AP funds seem to have a superior long-term investment strategy.