Jan F Qvigstad: On managing wealth Speech by Mr Jan F Qvigstad, Deputy Governor of Norges Bank (Central Bank of Norway), at the Norwegian Academy of Science and Letters, Oslo, 8 November 2011. The text below may differ from the actual presentation. This speech does not contain assessments of the economic situation or current interest rate setting. *  *  *  I would like to thank Amund Holmsen, Marie Norum Lerbak and Øystein Sjølie for their valuable assistance in preparing the speech. Thanks also to Ola Peter Krohn Gjessing, Espen Henriksen and Pål Winje for useful comments. I would also like to thank Helle Snellingen for her contribution to the translation of the Norwegian text into English. Introduction From Norges Bank we can see the corner of the two streets Tollbugaten and Kirkegaten. This is where the Collett building was situated until 1939 when it was dismantled and moved to the Norwegian Museum of Cultural History at Bygdøy. By then, the Collett family had not occupied the building for years and their wealth was long gone. Around the end of the 18th century, John Collett made a large fortune in the timber industry. He also ran the great Ullevål farm and by the time of his death in 1810 he was managing one of the country’s largest wealth portfolios. Collett was also known to spend extravagant amounts on lavish parties. The Napoleonic Wars and the English blockade took a heavy toll on the family business.

Companies that produce weapons in violation of fundamental humanitarian principles and companies that produce tobacco are excluded. Corruption or contributing to severe environmental damage may also lead to exclusion. About 50 companies are excluded. 29 There is often the dilemma of whether we should withdraw entirely from a company or enter into dialogue. If we withdraw, we lose a channel of influence. 24  See Credit Suisse Global Investment Returns Yearbook 2011: https://infocus.credit-suisse.com/app/ _customtags/download_tracker.cfm?dom=infocus.credit-suisse.com&doc=/data/_product_documents/_shop/ 300847/credit_suisse_global_investment_yearbook_2011.pdf&ts=20110326172226  25  Private investors, with shorter investment horizons, should have lower allocations to equities. 26  For more about the Government Pension Fund Global’s investment strategy, see the NBIM website: http://www.nbim.no/en/Investments/  27  Aanund Hylland (2005): “Statens reservefond 1904–25. Et forsøk på å binde politisk handlefrihet? [The government reserve fund 1904-25. An attempt to bind the political room for manoeuvre? ]”, Norges Bank Penger og Kreditt, no. 3, p. 182 (Norwegian only). 28  For more on the fund’s real estate investments, see the NBIM website: http://www.nbim.no/en/Investments/ asset-mix/Real-estate/  29  The Ministry of Finance decides which companies to exclude. For more on exclusion from the Government Pension Fund Global, see website: http://www.regjeringen.no/en/dep/fin/Selected-topics/the-governmentpension-fund/responsible-investments/negative-screening-and-exclusion.html?id=447009  8  BIS central bankers’ speeches  We now own shares in more than 8 000 companies worldwide. As shareholders, we are entitled to vote when important decisions are made about companies in which we have an ownership stake. Should we actively seek to influence developments or should we remain passive observers? Many large funds choose the latter.