It further claims that the high costs are an indication of a lack of competition in the market. As expected, the criticism has not been well received by the industry, which feels the decision is unjust and the findings wrong.

From a Nordic perspective, it is surprising that the Danes are being attacked for their lack of co-operation. In fact, the Danish pensions industry has for some time been quite innovative in trying to cut costs and gain large-scale advantages by coming together. Not only are there several examples of formal co-operation through mergers or joint administration structures, but there are also plenty of informal networks, for example, with Danish funds investing together.

Meanwhile, north of Denmark, the Norwegians are looking into improving the already robust ethical standards of the Government Pension Fund – Global (see page 11). No one could have expected the rate of growth the oil fund has experienced over the past 10 years – which has made it the largest pension fund in Europe with assets of NKr1,945.8bn (€241bn) – nor the impact its ethical standards would have for investors all over the world.

While the Norwegian government has admitted its surprise at the large influence its ethical decisions are having abroad, it is also confidently taking the lead. Finance minister Kristin Halvorsen recently said, not without pride, that Norway’s ethics were referred to as “golden standards” abroad and continued: “Our aim is also to set standards that will inspire other funds.”

Without a doubt, not only the Norwegians will pay attention to the debate on ethics. It will also be closely monitored by the rest of the Nordic market.

These issues, as well as the other latest developments, will of course get full coverage and analysis in the coming editions of nrpn, but until then, I wish you all a very nice summer.

Caroline Liinanki
Editor

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