Present:

Executive Board:

Øystein Olsen, Jon Nicolaisen, Egil Matsen, Kjetil Storesletten, Karen Helene Ulltveit-Moe, Kathryn M. Baker, Steinar Juel and Kristine Ryssdal

Alternates:

Arne Hyttnes and Kristine Landmark

Employee representatives:

Kjersti-Gro Lindquist (items 208-212) and Mona H. Sørensen (items 208-212)

Supervisory Council:

Jan Frode Jakobsen (items 203-206 and 208-211)

Management:

Ørjan Agdesteen (items 208-211 and 213-214), Ida Wolden Bache (item 213), Olav Bø (items 210-211 and 213-214), Hege Gjerde (item 208-211), Trond Grande (items 203-209), Bjarne Gulbrandsen (items 203-215), Geir Guldahl (items 210 and 211), Pål Haugerud (items 203-206, 208-209 and 213-214), Jane Haugland (items 210-211), Mie Holstad (items 208-211), Dag Huse (items 203-204), Karsten Kallevig (items 203-209), Runar Malkenes (items 203-205 and 212-214), Kyrre Nilsen (items 203-206 and 208-215), Arne Osnes (items 213-214), Johann Rud (items 213-214), Thomas Sevang (items 205), Yngve Slyngstad (items 203-209), Ingrid Solberg (item 213), Ingunn Valvatne (items 203-206 and 208-211), John Tore Vatnar (item 206)

There were no comments on the meeting notice and agenda.

Item 203/2018 GPFG – Executive Board's investment mandate for the CEO of Norges Bank Investment Management (NBIM)

Discussion document: Memo from NBIM of 15 November 2018

Yngve Slyngstad presented the matter for discussion.

The Executive Board discussed the matter and decided to update the NBIM CEO Investment Mandate in line with the recommendation and comments at the meeting, including the adjustment to limits for unlisted real estate investments in France. The updated investment mandate is to be sent to the Ministry of Finance and published in connection with its entry into force on 1 January 2019.

Item 204/2018 Government Pension Fund Global (GPFG) – Revision of governance documents issued by Norges Bank's Executive Board

Discussion document: Memo from NBIM of 15 November 2018

Yngve Slyngstad and Dag Huse presented the matter for discussion.

The Executive Board discussed the matter. The Governor was authorised to finalise the document based on the Executive Board's feedback and remarks. The updated principles for risk management are to be sent to the Ministry of Finance and published in connection with their entry into force.

Item 205/2018 GPFG – Annual reporting 2018

Discussion document: Memo from NBIM of 15 November 2018

Yngve Slyngstad presented the plan for the consideration and publication of the GPFG's annual report and supplementary publications in 2018.

The Executive Board discussed the matter and concluded that all of the publications supplementing the annual report - on responsible management, return and risk and unlisted real estate - are to be considered by the Executive Board. The Executive Board approved the proposed timetable for publishing.

Item 206/2018 The Executive Board's subcommittees - revision of mandates and appointment of members

Discussion document: Memo from the General Secretariat of 12 November 2018

Egil Matsen presented the matter for discussion.

The Executive Board approved changing the mandates for the Audit, Risk and Investment, Remuneration and Ownership committees in line with the proposal. In addition, the mandate for the Risk and Investment Committee is to be revised for the sake of consistency with the adopted changes to the NBIM CEO Investment Mandate (item 203/2018).

The Executive Board decided on the following composition for the Ownership, Remuneration and Risk and Investment committees, respectively:

Ownership Committee:

• Egil Matsen, Chair
• Karen Helene Ulltveit-Moe, member
• Kristine Ryssdal, member

Remuneration Committee

• Arne Hyttnes, Chair
• Steinar Juel, member
• Kristine Landmark, member

Risk and Investment Committee

• Egil Matsen, Chair
• Kjetil Storesletten, member
• Kathryn Baker, member

These appointments apply until 31 December 2019.

Item 207/2018 Briefing on relevant matters for NBIM

Yngve Slyngstad gave a briefing on relevant matters for NBIM.

Item 208/2018 Minutes of the Executive Board meeting of 24 October 2018

Discussion document: Draft minutes

The Executive Board approved the minutes of its meeting of 24 October 2018.

Item 209/2018 Budget for investment management at Norges Bank in 2019

a. 2019 Budget for investment management at Norges Bank (NBIM and NBREM)
Discussion document: Memo from NBIM of 16 November 2018

b. Limit for the accrual of performance-based pay in investment management for 2019.
Discussion document: Memo from NBIM of 16 November 2018

Trond Grande and Karsten Kallevig presented the matter for discussion. Arne Hyttnes presented the position of the Remuneration Committee on overall personnel expenses and limits for the accrual of performance-based pay in investment management.

The Executive Board discussed the matter and approved the proposed 2019 budget for NBIM including Norges Bank Real Estate Management. As part of the Executive Board's budget decision, the Executive Board approved the proposed budget for total personnel expenses including performance-based pay. The budget for performance-based pay is based on a continuation of the scheme whereby up to 100 investment area employees at offices outside of Norway may be granted contracts that include performance-based pay limited to 200 percent of fixed salary.

Item 210/2018 Budget for Norges Bank Central Banking Operations in 2019

Discussion document: Memo from Corporate and Shared Services of 15 November 2018

Ørjan Agdesteen presented the matter for discussion.

The Executive Board discussed the matter and approved the proposed 2019 budget for Central Banking Operations in 2019.

Item 211/2018 Proposed budget for Norges Bank for 2019

Discussion document: Memo from the General Secretariat/Corporate and shared services of 14 November 2018

Ørjan Agdesteen presented the budget proposal.

The Executive Board discussed the matter and approved the proposed budget for Norges Bank for 2019. The proposed budget is to be sent to the Supervisory Council for approval.

The Governor was authorised to finalise the document based on the Executive Board's remarks.

It is assumed that the Supervisory Council authorises the Executive Board to make use of budget allocations within the investment limits. The Executive Board further authorises the Governor to make use of allocations within the investment limits.

Item 212/2018 Briefing on relevant matters

The Governor gave a briefing on relevant matters.

Item 213/2018 Response to interest rate decision – monetary policy meeting of 24 October

Discussion document: Memo from Monetary Policy of 29 October 2018

Ida Wolden Bache presented the matter for discussion.

The Executive Board took note of the matter.

Item 214/2018 Strategic equity allocation in the foreign exchange reserves

Discussion document: CONFIDENTIAL Memo from Markets and ICT of 15 October 2018

Olav Bø presented the matter for discussion. In accordance with a provision of the Norges Bank Act (Section 2, second paragraph), the Ministry of Finance is informed about the matter.

The Executive Board discussed the matter and decided to reduce the strategic equity allocation in the foreign exchange reserves from 35 percent to 20 percent. The change is to be incorporated into the Executive Board's principles for the management of Norges Bank's foreign exchange reserves. The Governor was authorised to implement the changes.

Item 215/2018 Any other business

In connection with the meeting, the Executive Board held a seminar on Brexit, which included measures and preparedness at Norges Bank.

The following were distributed for information together with the discussion documents:

• Norges Bank's annual report for ‏2018
  Memo from the General Secretariat of 14 November 2018
• Environmental strategy for Norges Bank's activities
  Memo from the Communications Director of 16 November 2018
• GPFG - Investment mandate for unlisted real estate
  Memo from NBIM of 15 November 2018
• GPFG - Reports and presentations from meetings with the Ministry of Finance on 18 August and 25 October 2018
  Memo from NBIM of 15 November 2018
• NBIM Report: GPFG Performance and Risk Report - September 2018
• Benchmarking Global Fixed Income Portfolios
  Report from expert group appointed by the Ministry of Finance of 5 November 2018
• Letter from the Ministry of Finance of 2 November 2018: Nomination of members of the Council on Ethics
• Letter from the Ministry of Finance of 5 November 2018: GPFG - Regular evaluation of the organisation of work on responsible investment
• Letter from the Ministry of Finance of 6 November 2018: GPFG - Benchmark index for equities
• Letter from the Ministry of Finance of 16 November 2018: GPFG - Management fee for 2019
• Letter to the Ministry of Finance of 25 October 2018: GPFG – Guidelines for observation and exclusion
• Letter to the Ministry of Finance of 29 October 2018: Investments in unlisted renewable energy infrastructure
• Letter to the Ministry of Finance of 30 October 2018: The environment-related investment mandates for the GPFG.
• Letter to the Ministry of Finance of 5 November 2018: GPFG - Management fee for 2019
• Letter to the Ministry of Finance of 7 November 2018: GPFG - Guidelines for observation and exclusion (conduct-based climate criterion)
• Letter to the Ministry of Finance of 16 November 2018: Rule for rebalancing the equity share in the GPFG
• Letter to the Ministry of Finance of 29 October 2018: Consultation response - Draft regulation on prudent consumer lending practices
• Copy of letter from the Council on Ethics to the Ministry of Finance of 13 November 2018: Follow up of the Report to the Storting The Government Pension Fund 2018