Tobacco, gambling, sex face Norway oil fund test

By John Acher

OSLO, Jan 16 (Reuters) - Norway plans an extensive review this year into the ethics of its $380 billion pension fund investments officials said on Wednesday.

The Government Pension Fund -- Global, familiarly known as the "oil fund", is one of the world's biggest sovereign wealth funds. It invests Norway's oil and gas income in overseas stocks and bonds to save for a future when the black gold runs out.

Finance Minister Kristin Halvorsen said the ethical guidelines review will result in a report to parliament next year, and she expected non-governmental organisations (NGOs) to raise a range of topics in hearings this spring.

"Production of tobacco, gambling for instance, nations that break human rights ... the sex industry -- these are entirely concrete issues" that will come up, Halvorsen told reporters during a two-day ethical investment conference.

Some groups have also proposed excluding investment in companies with activities in Palestinian territories occupied by Israel, Halvorsen said.

She later told Reuters there may also be a push for more investment into "green" technologies.

So far the fund, which is invested in 7,000-7,500 foreign companies, has excluded just 25 -- 20 arms producers, three for environmental damage and two for human or worker rights abuses -- from its "investment universe" on ethical grounds.

Just last week, it ejected South Korea's Hanwha Corp (000880.KS), Britain's Serco Group (SRP.L) and U.S. company GenCorp (GY.N) from its investments for being engaged in cluster munitions and nuclear weapons production.