The invitation has been sent to a large number of Norwegian and foreign investment managers. An open invitation has also been put on the Internet (www.norges-bank.no) so that all investment managers who are interested are able to participate in the competition.

In this round, managers are invited to submit offers for both active equity management and enhanced index management. In active management, managers will be able to choose between companies, sectors and/or markets on the basis of their own analyses. However, each manager will be subject to clearly defined restrictions as regards the amount of risk they can take. Enhanced index management means that managers can take some risks in relation to specified share indices. This type of management may be viewed as a cross between active equity management and index management.

The mandates are divided into five regions/countries. These are: North America, the UK, Europe (excluding the UK and Norway), Japan and Asia/Oceania (excluding Japan). Managers can only invest in companies listed on the stock exchanges of the 21 countries specified in the Ministry of Finance's regulation of 3 October 1997. As the regulation stipulates that the Government Petroleum Fund shall not own more than 1 per cent of equity capital in any one company, each manager must only purchase small shares in the companies selected.

Management according to the new mandates will commence at the earliest in July 1998. Norges Bank has not yet decided the size of the portfolios to be managed as active mandates and those to be managed as enhanced index mandates. However, the main part of the portfolio will be managed as pure index mandates. Norges Bank selected four index managers in autumn 1997. These mandates were announced on the Internet on 7 July 1997.

The deadline for tenders for the mandates announced today is 27 February 1998. Norges Bank will select the most relevant managers for a detailed selection round, based on responses to the questionnaire sent out.