Most of the fund is invested in equities, which are ownership interests in companies. Another part is invested in bonds, which are a type of loan to governments and companies, and a final slice is invested in real estate and renewable energy infrastructure.
An equity, or share, is a stake in a company that entitles the holder to a proportion of its profit. How much profit a company makes depends on factors such as the economy, the company’s ability to create value, and market conditions.
The fund’s equity investments span more than 8,500 companies in numerous countries, industries and currencies all around the world. Our investments are limited to companies listed on regulated exchanges, and the fund is not permitted to hold more than 10 percent of the shares in a listed company, with the exception of real estate companies.
Our equity investments are spread across a variety of . The greatest geographical exposure is to North America and Europe, followed by developed markets in the Asia-Pacific region and emerging markets.
The fund’s benchmark index is set by the Ministry of Finance. The equity portion of the benchmark index is based on the FTSE Global All Cap index. See the fund's benchmark index.
We use external managers to handle parts of the fund's equity investments. We award investment mandates to organisations with expertise in clearly defined areas. These managers will seek to beat the markets they operate in and generate excess return for the fund by using detailed and in-depth analysis of specific markets and companies. The mandates typically cover investments in emerging markets and small-capitalisation companies in developed markets. Read more about our external mandates.
Companies’ activities can have a great impact on local communities and the environment. Over time, this could affect their profitability and so the fund’s return. As a responsible investor, we make active use of our voting rights and vote at all shareholder meetings. We assess companies’ corporate governance and sustainability performance, and we issue clear expectations of the companies we invest in. There are also some types of company we choose not to invest in. Read more about our responsible investment management.
The equity investments consists of ownership shares in more than 8,500 companies worldwide. On average the fund owns 1.5 percent of all listed companies.
When we buy fixed-income instruments, we are lending money to the issuer. During the loan period, the issuer pays us interest. The interest rate depends on factors such as inflation expectations, the maturity of the loan, and the creditworthiness of the issuer.
The fund’s fixed-income investments are allocated 70 percent to bonds issued by governments and related institutions and 30 percent to securities issued by the corporate sector.
Our investments in government bonds are distributed between countries according to the size of their economy as measured by GDP.
Most of these investments are in developed markets, with a high percentage denominated in euros, dollars, pounds and yen. These bonds will normally have a high credit rating and be very liquid. The mandate also permits up to 5 percent of fixed-income investments to be in bonds from issuers in emerging markets.
The fund invests not only in bonds issued by companies but also in covered bonds, which are issued by banks and backed by a portfolio of mortgages. Corporate bonds normally produce higher returns than government bonds.
All investments in corporate bonds follow an internal or external credit assessment. The portfolio is managed with the aim of ensuring that bonds with a credit rating below investment grade do not exceed 5 percent of the fund’s total bond holdings.
The FX Global Code is a set of international principles of good practice in the foreign exchange market, developed by central banks and market participants. It promotes fair and transparent currency trading by establishing common standards for everyone involved in the market.
We signed the updated FX Global Code on 30 Oct 2025. This re-affirms our commitment to the principles of the Code as a market participant in the foreign exchange market, as well as adherence of its internal practices and processes with these principles.
We encourage all FX market participants and its counterparties to adhere to the latest version of the Code, in order to promote the integrity and effective functioning of the global FX market.
Percentage of market value of bonds in the benchmark index as at 30 June 2025.
The fund owns hundreds of buildings in attractive locations worldwide. We invest in both unlisted and listed real estate.
We invest in large, traditional sectors such as office and logistics. We will gradually invest more in newer and higher growth sectors. Most of the fund’s real estate investments are located in North America and Europe. A smaller portion can be invested in Asia, Oceania and in emerging markets.
We invest in real estate with to maximise the fund’s return after costs. In addition, investing in real estate generates annual rental income and helps shield the fund from the ups and downs of the stock market.
We manage the properties in our portfolio in a responsible and environmentally sustainable manner, as we believe that this supports our objective of the highest possible long-term return. We work with our investment partners and asset managers to integrate sustainability improvements into the business plans for the properties. We have also published a guidance document on responsible management of unlisted real estate, which provides a basis for our dialogue with investment partners and asset managers.
The fund's real estate strategy includes both unlisted and listed real estate investments. The fund's investments in listed real estate companies have exposure to high-quality properties in attractive cities and sectors globally that complement the fund’s unlisted real estate portfolio. The listed portfolio is mainly invested in the residential, office and retail sectors. Geographically, it is split almost equally between the US and Europe.
The energy transition creates substantial investment opportunities in both renewable generation and enabling infrastructure.
The fund’s management mandate defines renewable energy infrastructure to cover production, transmission, distribution and storage of energy based on renewable energy sources. Up to 2 percent of the fund can be invested in unlisted renewable energy infrastructure.
The fund is invested in renewable energy infrastructure in Europe and North America. We invest directly in wind and solar power and will increase investments in distribution and storage as investment opportunities arise.
We are building up a diversified portfolio across technologies such as offshore wind, onshore wind, solar power and hydropower, as well as enabling technologies such as electricity grids and battery energy storage.
We focus on projects with reduced power price risk, stable cash flow, and limited risk to the principal investment. We invest alongside high-quality partners with operational experience.
We invest in renewable energy infrastructure projects to maximise the fund’s return over time. It can also contribute to better diversification. The return on these investments comprises the net income from these assets and the change in their value during the period.
We manage our investments in a responsible and sustainable manner, as we believe that this supports our objective of the highest possible long-term return. We have published a guidance on responsible management of unlisted renewable energy infrastructure, which provides a basis for our dialogue with investment partners and asset managers.
Search in all of the fund’s investments by country, asset class and sector. This information is updated twice a year and is available since our first investment in 1998.