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.

The fund's largest bond holdings

As at 31 December 2019. Millions of kroner.

Issuer Country Holding
IssuerUnited States of AmericaCountryUSHolding701,616
IssuerJapanese governmentCountryJapanHolding244,195
IssuerFederal Republic of GermanyCountryGermanyHolding98,548
IssuerFrench RepublicCountryFranceHolding80,783
IssuerUK governmentCountryUnited KingdomHolding72,793
IssuerSpanish governmentCountrySpainHolding51,554
IssuerSouth Korean governmentCountrySouth KoreaHolding49,049
IssuerMexican governmentCountryMexicoHolding43,360
IssuerItalian RepublicCountryItalyHolding42,427
IssuerGovernment of CanadaCountryCanadaHolding30,640
IssuerAustralian governmentCountryAustraliaHolding29,344
IssuerKreditanstalt fur WiederaufbauCountryGermanyHolding29,123
IssuerCanada Mortgage & Housing CorpCountryCanadaHolding26,781
IssuerGovernment of IndonesiaCountryIndonesiaHolding26,532
IssuerGovernment of South AfricaCountrySouth AfricaHolding20,303
IssuerGovernment of Russian FederationCountryRussiaHolding20,238
IssuerIndian governmentCountryIndiaHolding18,986
IssuerBrazilian governmentCountryBrazilHolding18,161
IssuerGovernment of BelgiumCountryBelgiumHolding17,013
IssuerGovernment of MalaysiaCountryMalaysiaHolding16,984

Holdings in fixed-income markets

Percentage of market value of bonds in the benchmark index

Source: Bloomberg Barclays Indices, Norges Bank Investment Management

Last saved: 21/08/2019

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