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Fixed-income management

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.

Government bonds

The investments in government bonds are distributed according to the economic size of a country, as measured by its gross domestic product. Norges Bank Investment Management also considers the strength of a country’s public finances when investing in government bonds.

The majority of the investments are in developed countries, with a high percentage of government bonds denominated in euros, dollars, pounds and yen. Around 10 percent of fixed-income investments are in government bonds in currencies from emerging markets. These bonds generally have an investment grade credit rating.

Corporate bonds

The investments in corporate bonds include debt issued by companies as well as covered bonds, or debt issued by banks that are secured by a portfolio of mortgage loans. Corporate bonds normally provide a higher return than government bonds.

All corporate bond investments are made after a credit assessment, either external or internal. Holdings in non-investment grade bonds are targeted to not exceed 5 percent of the overall fixed-income portfolio.

HOLDINGS IN FIXED-INCOME MARKETS

Percentage of market value of bonds in the benchmark index

Source: Bloomberg Barclays Indices, Norges Bank Investment Management

      

The fund's largest bond holdings

As at 31 March 2018. Millions of kroner

Issuer Country Holding 
United States of America US                                        608,725
Japanese government Japan                                        184,922
Federal Republic of Germany Germany                                        115,349
UK government UK                                          60,285
French Republic France                                          69,928
Italian Republic Italy                                          39,958
Spanish government Spain                                          35,264
Mexican government Mexico                                          46,244
South Korean government South Korea                                          45,409
Australian government Australia                                          35,216
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holdings

See all fixed-income 
investments

The fund's total holdings are published annually with the annual reporting on the fund. The annual holdings as at 31 December are available from inception in 1998.