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.
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
|IssuerUnited States of America||CountryUS||Holding 650 308|
|IssuerJapanese government||CountryJapan||Holding 185 108|
|IssuerFederal Republic of Germany||CountryGermany||Holding 91 036|
|IssuerUK government||CountryUK||Holding 62 875|
|IssuerSpanish government||CountrySpain||Holding 56 086|
|IssuerFrench Republic||CountryFrance||Holding 55 721|
|IssuerSouth Korean government||CountrySouth Korea||Holding 42 676|
|IssuerMexican government||CountryMexico||Holding 41 167|
|IssuerItalian Republic||CountryItaly||Holding 35 662|
|IssuerKreditanstalt für Wiederaufbau||CountryGermany||Holding 34 575|
Holdings in fixed-income markets
Percentage of market value of bonds in the benchmark index
Last saved: 21/08/2019