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

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.

Corporate bonds

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 fund's largest bond holdings

As at 30 June 2021. Millions of kroner.

Issuer Country Holding 
IssuerUnited States of AmericaCountryUSHolding                                      780,735
IssuerJapanese governmentCountryJapanHolding                                      221,426
IssuerUK governmentCountryUKHolding                                         98,950
IssuerFederal Republic of GermanyCountryGermanyHolding                                         90,467
IssuerFrench RepublicCountryFranceHolding                                         85,281
IssuerAustralian governmentCountryAustraliaHolding                                         42,896
IssuerSpanish governmentCountrySpainHolding                                         42,875
IssuerItalian RepublicCountryItalyHolding                                         41,466
IssuerCanadian governmentCountryCanadaHolding                                         39,799
IssuerCanada Mortgage & Housing CorpCountryCanadaHolding                                         35,289

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: 18/08/2021

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