Central Bank Governor Kjell Storvik has appointed a project group with the mandate of preparing for the management of the Government Petroleum fund. The project is being headed by Knut N. Kjær, a former executive vice president in Storebrand. The project will result in a separate entity in Norges Bank that shall be operational from 1 January 1998. The Section for Asset Management will report to the central bank governor and operate separately from Norges Bank's foreign exchange and monetary policy functions.

On 20 June the Storting (Norwegian parliament) endorsed the proposal in the Revised National Budget entailing that part of the Government Petroleum Fund could be invested in foreign equities. The decision is in line with the recommendations presented by Norges Bank in a letter to the Ministry of Finance in April.

Norges Bank manages the Petroleum Fund based on guidelines issued by the Ministry of Finance. New guidelines are expected in connection with the presentation of the National Budget for 1998 in October, with investments in equities starting in January 1998. Norges Bank has for some time endeavoured to enhance expertise and improve the system for asset management, and the establishment of the project is an important component of this work.

Norges Bank will use external managers for equity investments. Mandates for equity management will be announced in early July, with reservations concerning the formulation of the new guidelines. The announcement will be targeted at both Norwegian and international managers and will be available on Norges Bank's Internet pages (http://www.norges-bank.no). Norges Bank will make use of recognised international expertise for a through assessment of the relevant managers.

Norges Bank will in the near future advertise positions for persons with excellent qualifications in the field of capital management, particularly in the areas of risk management, equity investments and the follow-up of external equity managers. Efforts are also being made to establish a trainee scheme.

Contact: Norges Bank Kapitalforvaltning, telephone: +47 22 31 62 71