off this presentation by recapitulating some of the main insights we have gained in the decade the fund has existed. an important key to the success of the fund so far has been the clear separation between investment decisions by professionals in a performance - oriented environment, and the economic policy role of the fund. we have been able to establish a setting where investments are made in a business - like manner. another essential insight is the importance of political support for strategic allocation. there was a broad consensus in parliament behind the choice of investing in equities in 1997. this was important in order to navigate through the turbulent waters of equity markets in the beginning of this century – and such turbulence will certainly return. perhaps most importantly, the government pension fund and our fiscal guideline have helped us to avoid the common pitfalls in resource rich economies, e. g. lack of fiscal discipline and loss of focus in structural policy. we have managed to avoid creating a subversive second fiscal budget. the fund has shielded the mainland economy from excessive variability and has to a large extent reduced the oil - price dependency of the exchange rate. yet, i would like to end with a word of caution : the model we have chosen in norway has evolved in a norwegian setting and is not necessarily suited as a blueprint for other countries. but it is important to understand the basic, and maybe universal, principles underlying the model and adapt them to the particular fiscal situation and the particular political tradition of the country in question. hopefully, i have managed to shed light on some of those principles today. thank you for your attention.

philosophy behind risk taking in norges bank. first and foremost, it is important to have a clear separation between activities directed towards achieving beta - exposure and activities linked to active risk taking. in that way, a true assessment of realised returns as well as costs associated with active management is possible. moreover, active risk taking is done with humility and with a strong belief in the effectiveness of markets. hence, we mostly apply active bets when we think we, either internally or through our external managers, possess an informational advantage. such an advantage is sought through a high degree of specialization. another type of active position is based on collecting risk premiums where we as an investor have a comparative advantage to bear the risk. an example of this is liquidity premiums. it has been a challenge to us to establish a professional and vigilant business culture within the central bank. i think we have succeeded. an important instrument in this respect has been performancebased remuneration for the bank's investment managers. the investment management wing of the bank now resembles a private investment manager rather than a typical central bank investment office. in particular, all investments are delegated to professionals in a clear line structure. but recruiting and keeping skilled human capital requires more than competitive wages. whether we succeed will depend on our ability to create an environment where such capital can thrive and prosper. our philosophy is to stimulate ownership of decisions and empowerment in the investment process – and that is appreciated by our managers. moreover, the mere importance of the mission, as formulated by our board, "... to safeguard and grow financial wealth for future generations through highly professional management coupled with strict integrity ", is attracting resources in and of itself. to wed a business culture to a central bank, with its civil service responsibilities, has posed a challenge in terms of adapting the bank's governance system to the increased importance of professional investment management. elements in addressing this include a strengthened focus on accountability by a clear division of responsibilities and a system of checks and balances. maybe the most important element in our governance system is the establishment of a high degree of transparency for the public by providing open information on performance, risks, costs and investments on a timely basis. all in all, we feel the challenge of managing the fund has enriched the organisation by forcing the central bank to think outside of the box. and perhaps the central bank perspective and values have added to the depth and long - term horizon of the investment organisation. let me round