As previously announced, Norges Bank is responsible for the operational management of the Government Petroleum Fund. In this connection, Norges Bank is inviting Norwegian and foreign management companies to submit an offer for the management of the Petroleum Fund's equity portfolio. The invitation is open to all interested parties, with a closing date of 8 August 1997. According to plans, the management of the equity portfolio will start in January 1998. The invitation is subject to the proviso that the management strategy and responsibilities may be adjusted in the light of more detailed guidelines which the Ministry of Finance is expected to issue in the autumn.

Norges Bank plans two rounds in connection with the invitation to submit an offer for the management of the equity portfolio in the coming year. In the first round, which starts today, the Bank wants to receive offers for the management of index portfolios. This will entail that the managers must spread investments over countries and enterprises so that the portfolio achieves a return that is nearly identical to movements in well-defined share indices. In order to minimise the risk of deviation from these indices, the managers must spread investments over most or all of the enterprises included in the indices.

A management strategy based on indices is in line with the signals given in the Revised National Budget. This type of index management is normally used internationally for large pension funds, which have increased the share of equity portfolios invested in this way in recent years. Index management entails low management costs and is appropriate for risk management in the overall equity portfolio.

Norges Bank will enlist an international consultancy firm to assist in the selection of managers. The invitation to submit an offer will be sent to a number of management companies. In addition, the invitation will be released on Norges Bank's Internet site (http://www.norges-bank.no) so that all interested parties may evaluate whether to submit an offer.

Contact: Norges Bank Kapitalforvaltning, tel: + 47 90 10 04 71 or

Lise Taylor, tel: + 47 22 31 62 71