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 December 2018. Millions of kroner

Issuer Country Holding 
IssuerUnited States of AmericaCountryUSHolding                                     638,715
IssuerJapanese governmentCountryJapanHolding                                      237,179
IssuerFederal Republic of GermanyCountryGermanyHolding                                      106,116
IssuerUK governmentCountryUKHolding                                         64,844
IssuerFrench RepublicCountryFranceHolding                                         47,998
IssuerSouth Korean governmentCountrySouth KoreaHolding 43,366
IssuerMexican governmentCountryMexicoHolding 42,594
IssuerSpanish governmentCountrySpainHolding 41,388
IssuerItalian RepublicCountryItalyHolding                                         36,517
IssuerAustralian governmentCountryAustraliaHolding                                         36,399
IssuerCanada Mortgage & Housing CorpCountryCanadaHolding 31,785
IssuerKreditanstalt für WiederaufbauCountryGermanyHolding 27,475
IssuerGovernment of IndonesiaCountryIndonesiaHolding 25,114
IssuerBrazilian governmentCountryBrazilHolding 23,284
IssuerGovernment of South AfricaCountrySouth AfricaHolding 21,139
IssuerEuropean Investment BankCountryInternational organisationHolding 19,530
IssuerGovernment of SwitzerlandCountrySwitzerlandHolding 18,757
IssuerGovernment of CanadaCountryCanadaHolding 18,275
IssuerIndian governmentCountryIndiaHolding 17,007
IssuerGovernment of MalaysiaCountryMalaysiaHolding 16,958
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See all fixed-income 

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.