Inflection Point to advise Norwegian government on responsible investment by country’s two giant pension funds

Norway’s Ministry of Finance has awarded four-year mandates for advice on how to further develop the responsible investment strategies of the country’s two massive pension funds, the NOK7.2trn (€785bn) Government Pension Fund Global (GPFG or Oil Fund) and the NOK185.7bn Government Pension Fund Norway (GPFN or Folketrygdfondet). The winners of the mandates are Inflection Point Capital Management, the London-based sustainable asset management firm, as well as index provider MSCI Barra and business consultancy McKinsey. The values of the mandates were not disclosed. Inflection Point will assist the Ministry with “strategic thinking, analysis and data around responsible investment for the GPFG and the GPFN, covering both global and domestic investments.” MSCI Barra and McKinsey, meanwhile, will follow-up and further develop the management framework. Matthew Kiernan, Inflection Point’s Founder and Chairman, said: “We are delighted that the Ministry selected us against tough competition. We are thrilled to be working with an investor that has helped to define some of the most forward-looking thinking in the global responsible investment field, including deepening the understanding of the responsibilities in being a universal owner.”The GPFG and the GPFN already have significant responsible investment capacity. Both Norges Bank Investment Management (NBIM), which manages the GPFG assets, and Folketrygdfondet employ several specialists to monitor the ESG (environment, social and governance) performance of the funds’ investee companies.
In March, NBIM also reaffirmed its commitment to engage with companies on ESG issues of significance to the GPFG and seek to vote its shares at all AGMs. Beyond its base in Oslo, NBIM has offices in London, New York and Shanghai. In addition, NBIM’s responsible investment efforts are supported by the Ethical Council, which advises it on company exclusions.
Eighteen months ago, Inflection Point teamed up with Groupe La Française (GLF), a French peer, to form a venture called LFIP. GLF owns 51% of the venture, with Inflection Point taking the other 49% stake. That venture has almost €1bn under management and recently launched a Carbon Zero Fund seeded with €25 million by GLF and based on Inflection Point’s research, methodology and proprietary analysis.